On a T account if you sold 40 units on account 3500.00(cost880) where would I post it on a t account
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On a T account if you sold 40 units on account 3500.00(cost880) where would I post it on a t account
There will be two transactions here: One for the units and one for the sale.
So your journal entries will be:
Debit Cost of Goods Sold for 880
Credit Merchandise Inventory for 880
(to record merchandise sold)
Debit Accounts Receivable for 3500
Credit Sales Revenue for 3500
(to record a sale)
So for these two transaction you will post to 4 T accounts:
Cost of Goods Sold, the right side of the T for 880
Merchandise Inventory, the left side of the T for 880
Accounts Receivable, the right side of the T for 3500
Sales Revenue, the left side of the T for 3500
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