#17

Complete the journal entries for the following transactions:

On August 1, 2019, XYZ Company sold merchandise on account for $25,000, with a cost of $15,000 using the perpetual inventory system, with the terms 2/10, n/30. There are two entries which includes first a _____________________ (debit or credit) to Accounts Receivable for ________________________ ($25,000 or $24,500) and a ________________________ (debit or credit) to Sales for _____________________________($25,000 or $24,500).

It also includes a debt to _____________________________ (cost of goods sold or inventory) for _______________________________ ($25,000 or $15,000) and a credit to ___________________ (cost of goods sold or inventory) for ________________________________ ($15,000 or $25,000).

On August 7, 2019, XYZ Company received payment from the customer. The entry would include a debit to

__________________ (cash or accounts receivable ) for ______________________ ($24,500 or $25,0000), another debit to

__________________ (accounts receivable or sales discount) for ______________________ ($500 or $100), and a credit to

__________________ (sales or accounts receivable) for ______________________ ($$25,000 or $24,500).