Question

Journalize the entries for the following transactions

Answer 1

Answer and Explanation:

The journal entry is shown below:

a. Cash $116,300  

       To  Sales $116,300

(Being the merchandise is sold for cash is recorded)

Cost of Merchandise Sold $72,000  

     To Merchandise Inventory $72,000

(Being the cost of the merchandise is recorded)

b. Accounts Receivable $755,000  

    To  Sales $755,000

(Being the merchandise is sold on account is recorded)

Cost of Merchandise Sold $400,000  

         To Merchandise Inventory $400,000

(being the cost of the merchandise is recorded)

c. Cash $1,950,000  

      To Sales $1,950,000

(Being the merchandise is sold for cash is recorded)

Cost of Merchandise Sold $1,250,000  

    To Merchandise Inventory $1,250,000

(Being the cost of the merchandise is recorded)

d. Cash $330,000  

     Sales  $330,000

(Being the merchandise is sold for cash is recorded)

Cost of Merchandise Sold $230,000  

       To Merchandise Inventory $230,000

(Being the cost of the merchandise is recorded)

e. Credit Card Expense $81,500  

        To Cash  $81,500

(Being cash paid is recorded)