Question

Suppose your company sells goods for $340, of which $220 is received in cash and $120 is on account. The goods cost your company $133 and were paid for in a previous period. Your company also recorded salaries and wages of $90, of which only $34 has been paid in cash. Record the sales revenue of $200 for cash and $100 on account and record the cost of goods sold of $125 using one journal entry 2. Record the salaries and wages expense of $70. journal entry has been entered

Answer 1

Answer:

The Journal entries are as follows:

(1) Cash A/c                     Dr. $200

Account receivable A/c Dr.  $100

Cost of goods sold A/c Dr. $125

To sales revenue                              $300

To Inventory                                      $125

(To record the sales revenue)

(2) Salaries and wages expenses A/c  Dr. $90

To Cash                                                                $34                  

To salaries and wages payable                          $56

(To record the salaries and wages expense of $90)