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    Straga's Avatar
    Straga Posts: 1, Reputation: 1
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    #1

    Feb 12, 2013, 02:03 PM
    Accounting Equation - Sold merchandise
    "Merchandise was sold on credit for R9000. The goods were originally bought for R6000". Is this an asset,liability or owners equity?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Feb 12, 2013, 10:36 PM
    Your accounts will be: Merchandise Inventory (Asset), Accounts Receivable (Asset), Cost of Goods Sold (Income Statement which flows through to Owners Equity), and Sales Revenue Income Statement which flows through to Owners Equity).
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