On October 4, 2014, Terry Corporation had credit sales transactions of $2,800 from merchandise having cost $1,900. The entries to record the day's credit transactions include a

Question

Quizplus · Accepted Answer

The entry to record credit sales includes a credit to Sales Revenue for the amount of the credit sales ($2,800). There is no debit to inventory or cost of goods sold at this stage, as these accounts will be affected when the merchandise is sold and delivered to the customers.

On October 4, 2014, Terry Corporation Had Credit Sales Transactions