Need some help with the general ledger transactions in accounting. 1. There\'s a

Question

Need some help with the general ledger transactions in accounting.

1. There's a purchase of 69,000 in inventory. The company will pay the maufacturer 50% of the 69,000 in 10 days. Company will pay the remaining 50% in 30 days. Using the accrual accounting system.

So debit inventory. How do I record the Credit for this transaction? It's a liability since the company owns the manufacturer money. Do I have to record the two 50% transactions separately or do I combine them together as 69,000 credit into accounts payable?

2. Sale of inventory to a customer with a selling price of 92,000. The cost of the inventory sold is 42,000. Customer will pay for the purchase in 30 days.

So debit ACC Receivable for 92,000, what account do I credit for 92,000? Do I credit ACC payable? And for the other part of the transaction, Credit inventory for 42,000, debit inventory expense account for 42000.

3. Pay manufacturer for 50% due on purchase in question 1. Cash is taken out of bank.

Debit ACC payable and credit bank?

Explanation / Answer

1) Inventorty             debit $ 69,000

   Accounts payable credit $ 69,000

2) a) Accounts receivbale debit $ 92,000

     Sales account          credit $ 92,000

    b) Cost of goods sold debit $ 42,000

        Inventory               credit $ 42,000

3) Account Payable debit $ 34,500

      Bank                   credit $ 34,500

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