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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

1 answer

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.