Ledger postings for sale of inventory item

Jenni007 · #1 Jun 25, 2008, 09:26 AM

Hello.
Can anyone confirm the general ledger postings for the sale of an inventory item?
Really would appreciate your help.

Thank you.
Jenni

Criado · Jun 28, 2008, 10:16 AM

There are two ways to journalize the entry depending on Inventory System you're using.

Under the Periodic Inventory System,
Debit. Cash or Accounts Receivable
Credit. Sales

Under the Perpetual Inventory System,
Debit. Cash or Accounts Receivable
Credit. Sales

Debit. Cost of Goods Sold
Credit. Inventories



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!