Journal entry to record sale of inventory?

Answer 1

Many variables are involved when determining the proper journal entries to record a sale. For example, consignment sales are recorded uniquely based on the terms of the consignment agreement between parties. Whether or not the sale is for a service or a good also presents differences in the way journal entries are recorded for a sale. If the sale is for a good, whether the company uses a perpetual or periodic system to account for inventory must also be taken into consideration when recording journal entries for a sale. Another variable that must be taken into consideration when recording a sale is whether or not the sale is on credit with terms that allow the purchaser the opportunity to purchase the good or service at discount if paid in timely fashion (trade receivable), and in addition, whether the company uses the net method or gross method when recording journal entries.

Assuming the sales transaction is not made on consignment, is not a trade receivable, and no inventory is involved, the following are the journal entries to record the sale.

If the sale was a cash transaction:

DR cash

CR a revenue account

If the sale was a credit transaction:

DR an accounts receivable

CR a revenue account

Answer 2

Accounts receivable - customer (debit) selling price

Sales - revenue (credit) selling price

Cost of goods sold (debit) cost of those same items sold in our books

Inventroy - merchandise (credit) the value of those same items sold above in the records

NB: according to the double entry principle, make sure the totals of debits and credits are equal

Answer 3

debit accounts receivable
credit sales revenue

Answer 4

debit cash / accounts receivables
credit sales

Answer 5

debit accounts receivable
credit sales revenue

Answer 6

Debit finished goods inventory
Credit cost of goods sold

Answer 7

Customer a/c dr

cash/bank a/c cr

{being goods sold}

Answer 8

Cash a/c dr. (amount)

to sales a/c (amount)

Answer 9

Debit liabilities
debit cash / bank
Credit assets

Answer 10

debit accounts receivable
credit sales