Record journal entries for the following transactions for ABC Inc. during Septem
ID: 2507008 • Letter: R
Question
Record journal entries for the following transactions for ABC Inc. during September 2008 (no need to provide dates and explanations):
1. Sales on account during September were $40,000.
2. $34,000 was collected from customers on account during September.
3. Cash sales were $50,000 during September.
4. $40,000 of merchandise was purchased on account during September.
5. The cost of merchandise sold during September was $60,000.
6. $38,000 was paid to supplies on account during September.
7. $4,000 was paid during September for the month
Record journal entries for the following transactions for ABC Inc. during September 2008 (no need to provide dates and explanations): Sales on account during September were $40,000. $34,000 was collected from customers on account during September. Cash sales were $50,000 during September. $40,000 of merchandise was purchased on account during September. The cost of merchandise sold during September was $60,000. $38,000 was paid to supplies on account during September. $4,000 was paid during September for the month's advertising costs. $11,000 was paid for wages during September. Miscellaneous expenses of $10,000 were paid in cash during September.10. Amortization on the equipment for Sep 2008 was $500.Explanation / Answer
1. Sales on account during September were $40,000.
Debit: Accounts receivable 40,000
Credit: Sales revenue 40,000
2. $34,000 was collected from customers on account during September.
Debit: Cash 34,000
Credit: Accounts receivable 34,000
3. Cash sales were $50,000 during September.
Debit: Cash 50,000
Credit: Sales revenue 50,000
4. $40,000 of merchandise was purchased on account during September.
Debit: Merchandise inventory 40,000
Credit: Accounts payable 40,000
5. The cost of merchandise sold during September was $60,000.
Debit: Cost of goods sold 60,000
Credit: Merchandise inventory 60,000
6. $38,000 was paid to supplies on account during September.
Debit: Supplies 38,000
Credit: Accounts payable 38,000
7. $4,000 was paid during September for the month
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