Answer:
The Marchetti Soup Company
Journal Entries:
a) Debit Inventory $245,000
Credit Accounts Payable $245,000
To record the purchase of inventory on account.
b) Debit Salaries Expense $60,000
Credit Cash $60,000
To record the payment of salaries for the month.
c) Debit Accounts Receivable $300,000
Credit Sales Revenue $300,000
To record the sale of inventory on account
Debit Cost of Goods Sold $160,000
Credit Inventory $160,000
To record the cost of goods sold.
d) Debit Cash $280,000
Credit Accounts Receivable $280,000
To record the receipt of cash from customers.
e) Debit Accounts Payable $225,000
Credit Cash $225,000
To record the payment to suppliers on account.
Explanation:
Journal entries enable the identification of accounts involved in each transaction. They are used to make the initial record into the accounting books before they are posted to the general ledger. They show the accounts to be debited and the ones to be credited.
