Question

Journalize the following activity. Remember a complete journal entry includes a date, accounts, and amounts. Be sure to clearly indicate whether amounts are debit or credit entries.

On October 3rd, Company A sold on account $22,000 of merchandise that had a cost of $12,000. Terms offered were 2/10, n/30.

On October 18th, Company A received payment for the balance owed from the transaction on October 3rd.

Answer 1

Date	Account Titles	Debit $	Credit $
October 3rd	Accounts receivable	22,000
	Sales		22,000
October 3rd	Cost of goods sold	12,000
	Merchandise Inventory		12,000
October 18th	Cash	22,000
	Accounts receivable		22,000