On June 30,Caroline Inc.finished Job 750 with total job costs of $4,600 and transferred the costs to Finished Goods Inventory.On July 6,Caroline completed sale of the goods from Job 750 to a customer for $5,100 cash.In order to record the sale,two entries are necessary,one to record revenue,and one to record cost of goods sold.Which of the following is the correct entry needed to record the revenues?

Question

Quizplus · Accepted Answer

The correct entry to record the revenue is to debit Cash for $5,100 and credit Sales Revenue for $5,100. This is because the sale of the goods from Job 750 resulted in the receipt of cash, which is an asset, and an increase in sales revenue, which is an income statement account.