View Full Version : JOURNAL ENTRY for Financial Accounting
deckert
Nov 15, 2008, 07:46 PM
I have done all my journal entries for this particular problem, but I cannot figure out the last one.
It says "sale of finished goods costing $531,400 for $1,250,000 in cash." Someone please help me through this
ms180sx
Nov 16, 2008, 04:13 AM
You sold the goods for 1.25 mil that cost 531,400.
Credit 1, 250,000 to sales, and debit 531,400 to COGS expense acct.
The difference between cogs annd sales is gross profit, and after all expenses is net profit.
pready
Dec 5, 2008, 05:39 AM
To record the sale:
Debit Cash for 1,250,000
Credit Sales Revenue for 1,250,000
Debit COGS for 531,400
Credit Finished Goods Inventory for 531,400