Question

Q Date Sep. 1 Item Balance Unit Cost $ 64 0 Sale uantity 10 5 15 15 8 Purchase $ 72 Sale 30 Sale

Answer 1

Credit Date Sep, 6 Debit $320 $320 $320 $320 Sep, 8 $1,080 $1,080 Sep, 17 Accounts and Explanations Accounts Receivable (5 * $64) Sales Revenue (Note1) (To record sale on account) Cost of goods sold (5* $64) Merchandise Inventory (To record the cost of goods sold) Merchandise Inventory (15 *$72) Accounts Payable (To record purchase of merchandise inventory on account) Accounts Receivable (5* $64)+(10*$72) Sales Revenue (Note1) (To record sale on account) Cost of goods sold (5* $64) + (10*$72) Merchandise Inventory (To record the cost of goods sold) Accounts Receivable (3 *$72) Sales Revenue (Note1) (To record sale on account) Cost of goods sold (3* $72) Merchandise Inventory (To record the cost of goods sold) $1,040 $1,040 $1,040 $1,040 Sep, 30 $216 $216 $216 $216 Note1: The selling price is not given in the question. Therefore an assumption made that the goods are sold at cost. If selling price is given then the sales revenue is calculated by multiplying the quantity sold with the Selling price