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Transaction 5 Sales were $80,000. Cost of merchandise sold was 75% of its sales price. 75%...

Transaction 5 Sales were $80,000. Cost of merchandise sold was 75% of its sales price. 75% of the sales were on open account. [Note: Record the complete entry for the sales first and the complete entry for the expenses second] Account: Dollar amount: 60000 Account: Dollar amount: 20000 Account: Dollar amount: -60000 Account: Dollar amount: 20000 Account: Dollar amount: Account: Dollar amount: Foil1=Leave%20Blank

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Answer #1

Solution :

Journal Entries
Transaction Particulars Debit Credit
5 Accounts Receivables Dr $60,000.00
Cash Dr $20,000.00
           To Sales Revenue $80,000.00
(Being sales revenue recorded)
5 Cost of goods sold Dr $60,000.00
              To Inventories $60,000.00
(Being inventory sold transferred to COGS)
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