Use the information above to answer the following question.What journal entry (entries)will Darin prepare on October 1 to record this sale?
A) Debit Accounts receivable and credit Sales Revenue for $6,500
B) Debit Sales Revenue for $6,500 and credit Accounts Receivable and credit for $6,500; debit Cost of Goods Sold and credit Inventory for $4,200
C) Debit Cost of Goods Sold for $4,200, debit Gross Profit for $2,300, and credit Sales Revenue for $6,500
D) Debit Accounts Receivable and credit Sales Revenue for $6,500; debit Cost of Goods Sold and credit Inventory for $4,200

Question

Use the information above to answer the following question.What journal entry (entries)will Darin prepare on October 1 to record this sale?
A) Debit Accounts receivable and credit Sales Revenue for $6,500
B) Debit Sales Revenue for $6,500 and credit Accounts Receivable and credit for $6,500; debit Cost of Goods Sold and credit Inventory for $4,200 
C) Debit Cost of Goods Sold for $4,200, debit Gross Profit for $2,300, and credit Sales Revenue for $6,500
D) Debit Accounts Receivable and credit Sales Revenue for $6,500; debit Cost of Goods Sold and credit Inventory for $4,200

Quizplus · Accepted Answer

Darin will prepare a journal entry to debit Accounts Receivable and credit Sales Revenue for $6,500, reflecting the amount of the sale. Darin will also prepare a second journal entry to debit Cost of Goods Sold and credit Inventory for $4,200, representing the cost of the goods sold. Therefore, the best choice is D.

Use the Information Above to Answer the Following Question