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Assume we are selling a dress on credit for $100; the dress has a cost of $80.
Accounts receivable: debit 100
Sales: credit 100
Cost of goods sold: debit 80
Inventory: credit 80
The rationale is as follows:
Inventory is an asset (normal debit balance), which is reduced (hence a credit)
Accounts receivable is an asset (normal debit balance), which increases (hence a credit)
A profit is made of 20, hence equity increases. Instead of applying a credit on retained earnings, temporary T-accounts are used (sales and cost of goods sold)
Sales has a normal credit balance, hence it is credited
Cost of goods sold has a normal debit balance, hence it is debited
Notice that the two temporary T-accounts together are credited for 20, which is the profit margin
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What are some of the features of Nova credit card processing?
The features of Nova credit processing are point of sale transactions involving credit and debit cards. These terminals allow a business to process credit and debit sales.
Can a chase debit card also be used as a credit card?
Yes, but the funds are still withdrawn from the account that the debit card it linked to ... in other words using the debit card as a credit card is still a point of sale transaction. You cannot be extended "credit" on a debit card.
What is the essential difference in accepting credit cards in transacting business compared with accepting debit card?
When you purchase with credit cards, the transaction is on credit while when you purchase with debit card, the transaction is considered cash sale because the amount is directly deducted from your bank account.
Bank overdraft is in debit or credit side?
credit side
Is bank loan credit or debit in trial balance?
credit
Is cost of sale credit or debit?
Credit or debit
Is sales revenue closed with debit or credit?
In Bookkeeping always remember this Cash is always a Debit to the bank so the sale has to be a credit
How should I record the Sale of an asset and loss on sale in accounts of a business?
Cash/New Machinery (debit) Accumulated Depreciation - Old machinery (debit) Loss on Sale of Asset (debit) Old Machinery (credit) Cash (if money paid for new machinery in exchange) (credit)
What is credit sale entry?
[Debit] Accounts Receivable xxxx [Credit] Sales account xxxx
What is the double entry for sale?
Cash/Bank/Accounts Receivable [Debit] Sales[Credit]
Journalize entries for Trade-in Of Old Fixtures For New Ones in accounting?
[Debit] New Fixture [Debit] Accumulated-Depreciation Old Fixture [Debit] Loss on sale of old fixture (if any) [Credit]Old Fixture [Credit]Cash/Bank [Credit] Profit on sale of old fixture (if any)
What is the Journal entry for sale on credit?
Debit accounts receivable xxxx credit sales revenue xxxx
What is the journal entry to remove asset before it is fully depreciated?
[Debit] Cash / bank xxxx [Debit] Loss on sale of asset (if any) xxxx [Debit] accumulated depreciation xxxx [Credit] Asset xxxx [Credit]Profit on sale of asset (if any) xxxx
What are some of the features of Nova credit card processing?
The features of Nova credit processing are point of sale transactions involving credit and debit cards. These terminals allow a business to process credit and debit sales.
Can a chase debit card also be used as a credit card?
Yes, but the funds are still withdrawn from the account that the debit card it linked to ... in other words using the debit card as a credit card is still a point of sale transaction. You cannot be extended "credit" on a debit card.
What is the journal entry to record fixed asset disposals?
[Debit] Accululated Depreciation xxxx [Debit] Loss on disposal of asset xxxx [Credit] Asset account xxxx Entry 2 [debit] Profit and loss account xxxx [Credit] Loss on disposal of asset xxxx
What is the journal entry for gain on sale of land?
[Debit] Cash / bank xxxx [Debit] Accumulated Depreciation xxxx [Credit] Asset xxxx [Credit] Gain on sale of asset [balancing figure) xxxx
