Answer:
1. Dr Accounts Receivable $5,000
Cr Sales for $5,000
2. Dr Cost of Goods Sold for $2,400
Cr Merchandise Inventory for $2,400
Explanation:
1.,Preparation of the journal entry to record the revenue part of the transaction
Based on the information given we were told that on April they sells the amount of $5,000 in merchandise which means that the Journal entry will be :
Dr Accounts Receivable for $5,000
Cr Sales for $5,000
2. Preparation of Journal entry to record the cost part
Based on the information given we were told that the its cost the amount of $2,400 which means that the Journal entry will be :
Dr Cost of Goods Sold for $2,400
Cr Merchandise Inventory for $2,400
