Adjusting entries for merchandise

sunfiregirl · #1 Apr 9, 2008, 06:53 PM

A review of the cash sales invoices determined that one sale of $450 (cost of merchandise $142) was unearned.
This is saying that it has been recorded but have to undo the sale and you have the cash.

Is this correct?
Dr. Unearned sales
Cr. Sales
Dr. Inventory
Cr. Cost of Goods Sold

hamzashakaa · Apr 10, 2008, 12:36 AM

dr. Sales
cr. Unearned revenue (A liability account)
Dr. Inventroy
cr. Cogs



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