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tmaster47
Nov 2, 2010, 04:44 AM
A company that uses a perpetual inventory system made the following cash purchases and sales:
Jan 1: Purchased 100 units at $10 per unit
Feb 5: Purchased 60 units at $12 per unit.
March 16: Sold 40 Units for $16 per unit

Prepare general Journal entries to record the March 16 sale assuming a FIFO method is used.

Answer I got, Is it the right answer??

Cash debit 640
Sales Credit 640

Sales debit 400
To Cost of goods sold Credit 400

mmresd
Nov 2, 2010, 08:21 AM
It looks right.