Able sells and delivers a piece of equipment to Smythe for $2,000 on August 1 and the equipment cost $1,300. The sale is a cre

Question

leva [86]

3 years ago

6

Able sells and delivers a piece of equipment to Smythe for $2,000 on August 1 and the equipment cost $1,300. The sale is a cre

dit sale. How is this transaction accounted for under a periodic system of inventory?

Business

1 answer:

guapka [62] · Answer 1 · 2022-03-30T03:33:54+03:00

Answer:

Debit entry - Accounts Receivables - $2,000

Credit entry - Sales - $2000

Explanation:

Due to the fact that it is a credit sale, it means that the cash would be obtained at a future date in time. Hence, until then, Mr Smythe is indebted to Able as he is a debtor. Once he pays what he owes to Able and the cash has been received, Accounts receivables would be credited with $2000 and cash would be debited with $2000.

Able sells and delivers a piece of equipment to Smythe for​ $2,000 on August 1 and the equipment cost​ $1,300. The sale is a cre

Able sells and delivers a piece of equipment to Smythe for $2,000 on August 1 and the equipment cost $1,300. The sale is a cre