Menke Company is a furniture retailer and uses the perpetual inventory system On January 14 2010 Menke

Question:

Menke Company is a furniture retailer and uses the perpetual inventory system On January 14 2010 Menke purchased merchandise inventory at a cost of 25000 Credit terms were 210 n30 The inventory was sold on account for 40000 on January 21 2010 Credit terms were 110 n30 The was settled on January 23 2010 and the were settled on January 30 2010 Prepare journal entries to record each of these transactions

Account Titles and Explanation Date Debit Credit Jan. 14 Þan. 21 (To record credit sale) (To record cost of good sold)

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...