The Corbit Corp. sold merchandise for cash, $7,200. The cost of the merchandise sold was $3,950. The journal entry(s) to record this transaction would be

Question

Quizplus · Accepted Answer

The journal entry to record the sale of merchandise for cash should include a debit to Cash and a credit to Sales for the amount received from the customer. The cost of goods sold should also be recognized with a debit to Cost of Merchandise Sold and a credit to Merchandise Inventory for the cost of the items sold. Therefore, the correct journal entry is:
Cash 7,200
Sales 7,200
Cost of Merchandise Sold 3,950
Merchandise Inventory 3,950