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  • Jan 29, 2012, 09:21 PM
    kendrap36
    T account posting
    On a T account if you sold 40 units on account 3500.00(cost880) where would I post it on a t account
  • Jan 30, 2012, 07:34 AM
    pready
    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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