July 9: Sold merchandise for $500 cash. The cost of merchandise was $150. More info Begin by journalizing the revenue from the sale of merchandise. Do not record the cost of the sale yet. We will do that in the following step. \begin{tabular}{rrl} \hline 201X & & \\ July & 9 & Sold merchandise for $500 cash. The cost of merchandise was $150. \\ & 9 & Purchased merchandise from Rare Co. on account, $2,500, F.O.B. \\ & & shipping point (buyer pays freight); terms 3/10,n/30. Freight to be paid \\ & on July 20. \\ 20 & Paid freight on July 9 purchase, $100. \\ \hline \end{tabular}