Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Vivian is purchasing 5 0 0 T shirts at $ 2 0 a shirt from Berta wholesalers. The shirts cost Berta $ 1 0 a

Vivian is purchasing 500 T shirts at $20 a shirt from Berta wholesalers. The shirts cost Berta $10 a shirt. Vivian buys FOB Destination, shipping costs are $2,000. Vivian paid in Cash. What is the Journal Entry to record Bertas Sale (Exclude the shipping entry)?
a.
Dr COGS $5,000; Cr Inventory $5,000 AND Dr Cash $10,000; Cr Revenue S5,000
b.
Dr COGS $5,000; Cr Inventory $5,000 AND Dr Cash $10,000; Cr Revenue S10,000
c.
Dr Inventory $10,000; Cr COGS $10,000 AND Dr Cash $5,000; Cr Revenue S5,000
d.
Dr Inventory $10,000; Cr AP $10,000 AND Dr Cash $10,000; Cr Revenue $10,000

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

Connect For Financial Accounting Fundamentals

Authors: Author

8th Edition

126411169X, 9781264111695

More Books

Students also viewed these Accounting questions

Question

develop your skills of project planning.

Answered: 1 week ago

Question

evaluate different research strategies;

Answered: 1 week ago