Question

Dude Duds, Inc. is a clothing retailer specializing in affordable family apparel. Prepare journal entries and related adjusting entries (if any) for the transaction below for the first quarter ending March 31 of the current year. Sold merchandise with an original cost of $10,077,924 for $17,636,367 during the quarter. Of the total sales, 50% was for cash and the remainder was on account. Select one: O a. Dr. Cash $8,818,184; Dr. Accounts receivable $8,818,184; Cr. Sales revenue $17,636,367 O b. Dr. Cash $17,636,367; Dr. Cost of goods sold $10,077,924; Cr. Sales revenue $17,636,367; Cr. Inventory $10,077,924 O c. Dr. Cash $8,818,184; Dr. Accounts receivable $8,818,184; Cr. Cost of goods sold $10,077,924; Cr. Sales revenue $17,636,367; Dr. Inventory $10,077,924 O d. Dr. Cash $8,818,184; Dr. Accounts receivable $8,818,184; Dr. Cost of goods sold $10,077,924; Cr. Sales revenue $17,636,367; Cr. Inventory $10,077,924 O e. Dr. Sales revenue $17,636,367; Cr. Cash $8,818,184; Cr. Accounts receivable $8,818,184

Answer 1

Sr. No. Credit 1 Account Titles and Explanation Debit Cost of goods sold $ 10,077,924 Account Receivable $ 8,818,184 Cash $ 8,818,184 Sales Inventory (To record the sales) (Credit sales) (Cash Sales) 17,636,367 (Total Sales) 10,077,924 (Cost of goods sold will be credited to Inventory a/c) $ $ Cost of goods sold will be debited for the goods sold and credited to inventory for the inventory sold Answer is option d. I hope this solves your doubt. Feel free to comment if you still have any query or need something else. I'll help asap. Do give a thumbs up if you find this helpful.