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On February 10, Just Bags, a retail store, purchased $500 of inventory on account from a supplier. On February 20, Just Bags sold the inventory
On February 10, Just Bags, a retail store, purchased $500 of inventory on account from a supplier. On February 20, Just Bags sold the inventory on credit to customers for $1,000. The Just Bags's accountant needs to make two journal entries for the February 20 transaction. In the first entry, ________ is credited and ________ is credited in the second entry. Date Account Dr. Cr. 2-20-XX Accounts Receivable 1000.00 1000.00 Date Account Dr. Cr. 2-20-XX Cost of Goods Sold 500.00 500.00 Sales; Inventory, Inventory; Sales, Accounts Payable; Inventory, Sales; Accounts Payable
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