Answer:
Explanation:
The journal entries are shown below:
1. Merchandise Inventory A/c Dr $200,000
To Account payable A/c $200,000
(Being the inventory purchased is recorded)
2. Salaries Expense A/c Dr $51,000
To Cash A/c $51,000
(Being salaries expenses are paid for cash)
3. Cost of goods sold A/c Dr $142,000
To Merchandise Inventory $142,000
(Being the merchandise is sold for cost)
Accounts receivable A/c Dr $255,000
To Sales revenue A/c $255,00
(Being the merchandise is sold on credit)
4. Cash A/c Dr $235,000
To Accounts receivable A/c $235,000
(Being the cash is collected)
5. Accounts payable A/c Dr 180,000
To Cash A/c 180,000
(Being cash is paid)
