Question

March 12: Sold merchandise inventory on account for $ 4900​, 5​/15, ​n/30. These goods cost the company $ 1470.
may 30: Received cash from the March 12 customer in full settlement of the debt.

Journalize both

Answer 1

To journalize the transactions for March 12 and May 30, we will record the sale of merchandise and the subsequent cash receipt from the customer.

### March 12 - Sale of Merchandise Inventory
1. **Record the sale on account**:
- Debit Accounts Receivable for the amount of the sale.
- Credit Sales Revenue for the amount of the sale.

2. **Record the cost of goods sold**:
- Debit Cost of Goods Sold for the cost of the inventory sold.
- Credit Merchandise Inventory for the cost of the inventory sold.

**Journal Entry:**
```
Date Account Debit Credit
---------------------------------------------------------
March 12 Accounts Receivable $4,900
Sales Revenue $4,900
(To record sale of merchandise on account)

Cost of Goods Sold $1,470
Merchandise Inventory $1,470
(To record cost of merchandise sold)
```

### May 30 - Receipt of Cash from Customer
1. **Record the cash received from the customer**:
- Debit Cash for the amount received.
- Credit Accounts Receivable to clear the amount owed.

**Journal Entry:**
```
Date Account Debit Credit
---------------------------------------------------------
May 30 Cash $4,900
Accounts Receivable $4,900
(To record cash received from customer settlement)
```

These entries accurately reflect the sale and subsequent collection of cash from the customer.