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    CAlifr's Avatar
    CAlifr Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Oct 20, 2008, 01:35 AM
    Complex journal entry
    Sold to a customer for cash a water heater for $1200. The customer installed the water heater, which is part of inventory, originally cost $500
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
    		  
    #2

    Oct 20, 2008, 03:20 AM

    Dr. Cash 1200
    Cr. Sales 1200

    Dr. Cost of sales
    Cr. Inventory
    ryan2440's Avatar
    ryan2440 Posts: 13, Reputation: 1
    New Member
    		  
    #3

    Oct 20, 2008, 08:34 PM

    Debit- Cash $1200.00

    Credit- Sales $1200.00
    rekha12's Avatar
    rekha12 Posts: 1, Reputation: 1
    New Member
    		  
    #4

    Jan 31, 2011, 01:17 PM
    Cash a/c dr 1200 (Dr what comes in)
    To heater a/c 500 (Cr what goes out)
    TO income on sale of heater 700 (Cr incomes and gains)

    *** correct me
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #5

    Jan 31, 2011, 03:27 PM

    The correct answer is:
    Debit Cash for 1200
    Credit Sales Reveue for 1200

    Debit Cost of Goods Sold for 500
    Credit Inventory for 500
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