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    sierranr's Avatar
    sierranr Posts: 4, Reputation: 1
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    #1

    Oct 16, 2009, 06:33 PM
    Selling inventory
    How would you journalize this:

    Sold woodworking machinery and supplies to a company on account, for $24, 850.

    I know you would do

    Cash
    Sales

    But I know you need to decrease inventory... but I'm not sure what else... please help!
    sierranr's Avatar
    sierranr Posts: 4, Reputation: 1
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    #2

    Oct 16, 2009, 06:35 PM

    I meant Accounts Receivable(debit) and Sales (Credit).
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Oct 16, 2009, 09:25 PM

    Debit Cost of Goods Sold for the cost. So your 2nd entry is dr to COGS and cr to Inventory. (Though I don't see where a cost is presented. Are you sure you're doing perpetual?)
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