Question
A selley uses a perpetual inventory system and on April 4 it sells \( \$ 5,000 \) in merchandise with a cost of \( \$ 2,400 \) to a customer on credif terms of \( 3 / 10 \), ni30. Complete the two journal entries to record the sales transaction by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. The first joumal entry is to record the revenue part of the transaction and the second fournal entry is to record the cost part Wew tramsaction ust Journal entry worksheet Prepare the journal entry to record the revenue part of the transaction.
Ask by Burton Mcguire. in the United States
Mar 10,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
**Journal Entry for the Revenue Part:**
| Account Name | Debit (\$) | Credit (\$) |
|-------------------------|------------|-------------|
| Accounts Receivable | 5,000 | |
| Sales Revenue | | 5,000 |
Solution
**Journal Entry for the Revenue Part:**
| Account Name | Debit (\$) | Credit (\$) |
|-------------------------|------------|-------------|
| Accounts Receivable | 5,000 | |
| Sales Revenue | | 5,000 |
**Explanation:**
1. Increase in Assets: The sale on credit increases the asset "Accounts Receivable" by \( \$ 5,000 \) (debit).
2. Increase in Revenue: Recognize the revenue from the sale by crediting "Sales Revenue" for \( \$ 5,000 \).
Answered by UpStudy AI and reviewed by a Professional Tutor
Like
error msg
Explain 
Simplify this solution Extra Insights
To record the revenue part of the transaction on April 4, the journal entry would be: **Journal Entry: Revenue Part** - **Debit**: Accounts Receivable \( \$ 5,000 \) - **Credit**: Sales Revenue \( \$ 5,000 \) Now for the cost part of the transaction: **Journal Entry: Cost Part** - **Debit**: Cost of Goods Sold \( \$ 2,400 \) - **Credit**: Inventory \( \$ 2,400 \) These entries reflect the sale of merchandise on credit and the related cost of the goods sold in a perpetual inventory system.
