Dazzle,Inc.produces beads for jewelry making use.The following information summarizes production operations and sales activities for June.The journal entry to record June sales is:

Question

Quizplus · Accepted Answer

This choice correctly records the sales revenue and the related cost of goods sold. Debiting Accounts Receivable and crediting Sales records the amount of revenue earned during the month, while debiting Cost of Goods Sold and crediting Finished Goods Inventory records the cost of producing the goods that were sold. It is not necessary to debit Sales and credit Finished Goods Inventory, as the inventory has already been accounted for in the cost of goods sold calculation. Neither is it necessary to debit Sales and credit Accounts Receivable, as this double counts the revenue earned during the month.