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    KrystalLea's Avatar
    KrystalLea Posts: 16, Reputation: 2
    New Member
    		  
    #1

    Nov 27, 2007, 06:24 AM
    Cash sales summary journal entry
    Can someone please help with this entry ?

    Cash sales for the week totaled $20,000 with a gross profit rate of 38%.
    Make a summary journal entry.


    I know the entry for the sales, but I am having trouble on what to do
    With the 38 %?
    qcmar24's Avatar
    qcmar24 Posts: 65, Reputation: 3
    Junior Member
    		  
    #2

    Nov 27, 2007, 06:41 AM
    Quote Originally Posted by KrystalLea
    Can someone please help with this entry ?

    Cash sales for the week totaled $20,000 with a gross profit rate of 38%.
    Make a summary journal entry.


    I know the entry for the sales, but I am having trouble on what to do
    with the 38 %?
    I think that this is what you have to do,
    record the sale
    Dr.Cash... 20,000
    Cr.Sales... 20,000
    ----------------------------------------------------
    20,000 x .38= $7,600 this is the profict
    20,000 - 7,600= 12,400 this is the cost of the goods sold
    then,
    Dr.Cost of goods sold... 12,400
    Cr.Merchandise Inventory... 12,400
    Hope this could help you.
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