I have a question for 2 separate transactions that relate to each other to see if I'm doing it right:

1. The first transaction was a cash sale make for 500

• I did: Db. Cash then Cr. Sales

2. and this is the confusing part I stumbled upon; the transaction was:
Purchase merchandise on account for 42737 and 2737 were used to generate sales

• I did: Db. Merchandise Inventory 42737
• Cr. Accounts Payable 42737
• Db. Cash 2737
• Cr. Sales 2737
• Db. COGS 2737
• Cr. Merchandise Inventory 2737

Is this correct? Even though the first transaction did not state any sales of merchandise? Or do I have to use another account? Thanks

The question did not tell you the value of the sale therefore
Db. Cash 2737 Cr. Sales 2737
is a figment of your imagination

Quote:

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Originally Posted by paraclete

The question did not tell you the value of the sale therefore
Db. Cash 2737 Cr. Sales 2737
is a figment of your imagination

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Wait so what I wrote was not correct or no?

No there is no data supporting that transaction