Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On May 3rd, Bruser Company sold goods to one of it's customers with a $5,000 sales price on credit with terms of 2/10,n/30. The goods

On May 3rd, Bruser Company sold goods to one of it's customers with a $5,000 sales price on credit with terms of 2/10,n/30. The goods originally cost Bruser Company $2,750 when they purchased them. Which journal entry(s) does Bruser need to record on their books on May 3rd.

a.

Date

Account Title

Debit

Credit

May 3

Accounts Receivable

2,750

Sales

2,750

To record sale to customer on credit

May 3

Cost of Goods Sold

5,000

Merchandise Inventory

5,000

To record cost of sale

b.

Date

Account Title

Debit

Credit

May 3

Accounts Receivable

5,000

Sales

5,000

To record sale to customer on credit

c.

Date

Account Title

Debit

Credit

May 3

Accounts Receivable

5,000

Sales

5,000

To record sale to customer on credit

May 3

Cost of Goods Sold

2,750

Merchandise Inventory

2,750

To record cost of sale

d.

Date

Account Title

Debit

Credit

May 3

Sales

5,000

Accounts Receivable

5,000

To record sale to customer on credit

May 3

Merchandise Inventory

2,750

Cost of Goods Sold

2,750

To record cost of sale

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Business Innovation Audit

Authors: William Tate

1st Edition

0955970733, 978-0955970733

More Books

Students also viewed these Accounting questions

Question

Explain what is meant by the terms unitarism and pluralism.

Answered: 1 week ago