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
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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
Dr. Cash 1200
Cr. Sales 1200
Dr. Cost of sales
Cr. Inventory
Debit- Cash $1200.00
Credit- Sales $1200.00
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
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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