Question

On October 4, 2018, Sheffield Corporation had credit sales transactions of $5400 from merchandise having cost $2800. The entries to record the day's credit transactions include a debit of $5400 to Inventory. credit of $2800 to Cost of Goods Sold. credit of $5400 to Sales Revenue. debit of $2800 to Inventory.

Answer 1

Answer:

Cost of goods sold = $5,400

Sales on credit = $2,800

Date          General Journal           Debit   Credit

Oct. 4        Accounts receivable $5,400

                        Sales revenue                    $5,400

                 (To record sales on credit)

Date General Journal            Debit      Credit

Oct 4       Cost of goods sold     $2,800

                      Inventory                              $2,800

                (To record cost of goods sold)