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    deckert's Avatar
    deckert Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 15, 2008, 07:46 PM
    JOURNAL ENTRY for Financial Accounting
    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's Avatar
    ms180sx Posts: 64, Reputation: 6
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    #2

    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's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    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
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