On 1 November 2016,Everett Janitorial Supply sold inventory on credit for $5 500,including GST,FOB destination,2/10,n/30.The inventory cost Everett $3 200,net of GST.What is the journal entry that records Cost of sales?

Question

Quizplus · Accepted Answer

The journal entry to record Cost of sales is a debit to Cost of Sales account for the cost of the inventory sold and a credit to Inventory account for the same amount. In this case, the cost of inventory sold is $3,200 net of GST. Therefore, the journal entry would be:
Debit Cost of Sales $3,200
Credit Inventory $3,200

On 1 November 2016,Everett Janitorial Supply Sold Inventory on Credit Inventory 5500 Cost of sales 5500\begin{array} { | c | r | r | } \hline \text { Inventory } & 5500 & \\\hline \text { Cost of sales } & & 5500 \\\hline\end{array} Inventory Cost of sales ​5500​5500​​

On 1 November 2016,Everett Janitorial Supply Sold Inventory on Credit $\begin{array} { | c | r | r | } \hline \text { Inventory } & 5500 & \\\hline \text { Cost of sales } & & 5500 \\\hline\end{array}$