Question

On December 1st, Jackson Company sold merchandise with a selling price of $1,000 on account to Mr. Jenkins, with terms 3/10, n/30. Using the gross method and ignoring cost of goods sold, what journal entry did Jackson Company prepare on December 1st

Answer 1

Explanation:

The journal entry is as follows:

On December 1

Account receivable A/c Dr $1,000

               To Sales revenue $1,000

(Being the sale of merchandise is sold)

While recording this given transaction, we debited the account receivable as it increases the asset account and credited the sales revenue account as this also increases the sales account. Both the accounts are recorded for $1,000