Question

Sales were $78,000. Cost of merchandise sold was 75% of sales. 70% of sales were on open account. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]

Answer 1

No.	General Journal	Debit	Credit
a.	Cash	$23,400
	Accounts receivable	$54,600
	Sales		$78,000
	( To records sales)
b.	Cost of goods sold	$58,500
	Inventory		$58,500
	( To record cost of goods sold)

Cash = Sales x 30%

= 78,000 x 30%

= $23,400

Accounts receivable = Sales x 70%

= 78,000 x 70%

= $54,600

Cost of goods sold = Sales x 75%

= 78,000 x 75%

= $58,500

Kindly comment if you need further assistance. Thanks