Question

1?Provide the journal entries for Apple to sell a single iPhone for $800 ?Purchase price is 600?under both subscription and upfront recognition methods. Include journal entries to record cost of goods sold, including your estimate of this amount.(use excel picture to answer)

Answer 1

Cash a/c                       Dr. 800

            To Sale                           800

Cost of goods sold a/c         Dr.       600

            To Inventory                         600

Accounts Receivable a/c        Dr.    800

            To Sales                                800

Cost of goods sold a/c         Dr.       600

            To Inventory                         600