Triangle Company sold a product on credit for $2,235 to Hexagon Sales.The cost of goods sold was $1,324.Assuming Triangle is following a perpetual inventory system and using a sales journal,it will record $2,235 in the ________.

Question

Quizplus · Accepted Answer

Since Triangle is recording the sale on credit, the first account that will be debited is Accounts Receivable. The corresponding credit will be to Sales Revenue. Therefore, the correct option is D, which records the transaction in the Accounts Receivable DR, Sales Revenue CR column of the sales journal. The information about the cost of goods sold will be recorded separately in the inventory accounts.

Triangle Company Sold a Product on Credit for $2,235 to Hexagon