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Prepare ajournal entry for the following transactions: 1 . Purchase of vehicles from manufacturer on account: Debit: Inventory - Vehicles $ 6 0 8 ,
Prepare ajournal entry for the following transactions:
Purchase of vehicles from manufacturer on account:
Debit: Inventory Vehicles $
Credit: Accounts Payable $
Return of vehicles to the manufacturer:
Debit: Accounts Payable $
Credit: Inventory Vehicles $
Sale of vehicles for cash:
Debit: Cash $
Credit: Sales Revenue $
To record the sale of vehicles
Debit: Cost of Goods Sold $
Credit: Inventory Vehicles $
To record the cost of goods sold
Return of vehicle from customer for cash:
Debit: Cash $
Credit: Sales Returns and Allowances $
To record the return of the vehicle
Debit: Inventory Vehicles $
Credit: Cost of Goods Sold $
To put the vehicle back into inventory at cost
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