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24E-h

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Horngren'S Financial And Managerial Accounting
Found in: Page 945

Short Answer

Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.

h. Sold inventory on account, $22,000; cost of goods sold, $18,000.

Date

Particulars

Debit ($)

Credit ($)

1.

Accounts receivable

22,000

Sales revenue

22,000

2.

Cost of goods sold

18,000

Finished goods inventory

18,000

See the step by step solution

Step by Step Solution

Step-by-Step Solution:Step 1: Revenue

Revenue is explained as the income earned by the company by selling the goods manufactured by the company.

Step 2: Recording of Inventory sold and cost of goods sold in the books of the company

The sale of goods on account is recorded by debiting the accounts receivable account and by crediting the sakes revenue account.

The cost of goods sold is recorded by debiting the cost of goods sold and by crediting the finished goods inventory account.

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