Question

Transaction 5

Sales were $80,000. Cost of merchandise sold was 70% of sales. 40% of sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Answer 1

ANSWER:

Account	Cash (($80000 x 40%)	Dollar amount	$32000
Account	Accounts receivable ($80000 x 60%)	Dollar amount	$48000
Account	Retained earnings	Dollar amount	$80000
Account	Inventory ($80000 x 70%)	Dollar amount	-$56000
Account	Retained earnings ($80000 x 70%)	Dollar amount	-$56000
Account	leave blank	Dollar amount	leave blank