"Merchandise was sold on credit for R9000. The goods were originally bought for R6000". Is this an asset,liability or owners equity?
pready
Feb 12, 2013, 10:36 PM
Your accounts will be: Merchandise Inventory (Asset), Accounts Receivable (Asset), Cost of Goods Sold (Income Statement which flows through to Owners Equity), and Sales Revenue Income Statement which flows through to Owners Equity).