Question

Selling inventory costing $93,000 for a selling price of $111,000 to customers on account (to be received at a later date) would require which of the following as part of the journal entry?
A. Credit to Gain on Sale for $18,000
B. Debit to Cash for $111,000
C. Debit to Inventory for $93,000
D. Debit to COGS for $93,000

Answer 1

Answer:

D. Debit to COGS for $93,000

Explanation:

The following two journal entries are to be recorded in the accounts on the sale of inventory.

                                                  Debit              Credit

Revenue                                    $111,000                                                

Accounts receivable                                        $111,000

Cost of Goods sold                    $93,000                  

Inventory                                                            $93,000      

So based on the above discussion, the answer is D. Debit to COGS for $93,000