Sep. 8: Sold merchandise inventory to Hilton Company. $6,200, on account. Terms 3 15, n 35. Cost...
Question:
Sep. 8: Sold merchandise inventory to Hilton Company. $6,200, on account. Terms 3/15, n/35. Cost of goods, $2,542.
Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step.
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| Sep.8 | Accounts Receivable-Hilton Company | ||
| Sales Revenue | |||
Sales Revenue:
Sales revenue pertains to the amount of the goods delivered or services that have been rendered, which means that this is a transaction which has already been earned by the company. This does not necessarily mean that cash was already received as the sales can also be made on account. As long as the contract had been fulfilled by the seller, then, he must recognize revenue on his books.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerEntry to record the sales made on account
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| Sep.8 | Accounts Receivable-Hilton Company | 6,200 | |
| Sales Revenue | ... |
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
How to Calculate Sales Revenue: Definition & Formula
from
Chapter 5 / Lesson 27
207K
Learn about sales revenue, including examples and steps on how to calculate sales revenue. Compare revenue vs. sales and understand their impact on businesses.
Related to this Question
- Assume shoptop.com began in September with 8 units of inventory that cost a total of $144. During September, Shoptop purchased and sold goods as follows: Date # of units Cost/unit Begin Inventory on hand 8 $18 Sep 8 Purchase 24 $19 Sep 14 Sale 20 $38 Sep
- When units are sold, the cost associated with the units is debited to which account? a) Raw materials inventory b) Work in process inventory c) Finished goods inventory d) Cost of goods sold
- Inventory is capitalized on the balance sheet: a. until it is sold, where it is expenses as part of cost of goods sold. b. when it is part of R&D. c. only when cash is paid. d. only when it will never be sold. e. none of the answers
- When completed units are transferred to the warehouse: a. Cost of Goods Sold account is debited. b. Cost of Goods Manufactured account is debited. c. Finished Goods Inventory account is debited. d. Work-in-Process Inventory account is debited. e. Finished
- A merchandising firm's accounting system must allocate the Cost of Goods Available for Sale between: a. Cost of Goods Sold and the ending balance in Merchandise Inventory b. the beginning balance in Merchandise Inventory and Cost of Goods Sold c. Purchase
- Under a perpetual inventory system, acquisition of merchandise for resale is debited to the: a. Merchandise Inventory account. b. Purchases account. c. Supplies account. d. Cost of Goods Sold account.
- The cost of goods sold account on a company's books is the amount of goods: Select one: a. left in a company's inventory account at year-end and classified as ending inventory. b. inventory purchased during the year plus goods sold. c. inventory sold duri
- When finished goods are sold, the entry to record the cost of goods sold includes: a. a debit to Finished Goods Inventory and a credit to Cost of Goods Sold. b. a debit to Cost of Goods Sold and a cr
- Inventory, at the beginning of the year, cost $13,500. During the year, the company purchased (on account) inventory, costing $84,500. Inventory that had cost $80,500 was sold, on account, for $95,400
- Inventory at the beginning of the year cost $13,000. During the year, the company purchased (on account) inventory costing $82,000. Inventory that had cost $78,000 was sold on account for $93,400. At
- 1) Inventory at the beginning of the year cost $13,400. During the year, the company purchased (on account) inventory costing $84,000. Inventory that had cost $80,000 was sold on account for $95,000.
- Under the perpetual inventory system, in addition to making the entry to record a sale, a company would a. debit Inventory and credit Cost of Goods Sold. b. debit Cost of Goods Sold and credit Purchases. c. debit Cost of Goods sold and credit Inventory. d
- A company has a beginning inventory of $10,500, purchases of $5,500, and an ending inventory of $2,500. The cost of goods sold is the Cost of goods sold _____.
- 1) Under a perpetual inventory system, acquisition of merchandise for resale is debited to the: A) Inventory account. B) Purchases account. C) Supplies account. D) Cost of Goods sold the account.
- Under a perpetual inventory system, acquisition of merchandise for resale is debited to a. the Inventory account. b. the Purchases account. c. the Supplies account. d. the Cost of Goods Sold account.
- Billit Corporation is a merchandising company. Selected account balances are listed below: Purchases $225,000 Beginning Inventory $16,000 Ending Inventory $30,000 Using the cost of goods sold model, calculate the cost of goods sold for Billit Corporation.
- Using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a: a. debit to Cost of Goods Sold b. credit to Accounts Payable c. credit to Inventory d.. credit to Sales
- The cost of units sold is recorded by debiting cost of goods sold and crediting: a) Finished goods inventory b) Sales Revenue c) Work-in-process inventory d) Wages Payable
- Beginning inventory plus net purchases is: A. Cost of goods sold. B. Merchandise available for sale. C. Ending inventory. D. Sales. E. Shown on the balance sheet.
- Whispering Winds Corp. reported the cost of goods sold as follows. 2017 2016 Beginning inventory $ 29,090 $ 21,080 Cost of goods purchased 165,940 161,280 Cost of goods available for sale 195,030 182,360 Less: Ending Inventory 37,800 29,090 Cost of goods
- On March 2, Kwang Company sold $956,000 of merchandise to Sensat Company, terms 3/10, n/30. The cost of the merchandise sold was $552,000. Journalize the transaction.
- If beginning inventory is $60,000, cost of goods purchased is $380,000, and ending inventory is $50,000, cost of goods sold is: a. $390,000. b. $370,000. c. $330,000. d. $420,000.
- When units are sold, the cost associated with the units is credited to which account? a) Raw materials inventory b) Work in process inventory c) Finished goods inventory d) Cost of goods sold
- Longoria Company purchased merchandise inventory on account with a list price of $5,000 and credit terms of 1/10, n/30. What was the net or cash cost for the merchandise?
- A company begins 20X4 with merchandise costing $69,000. Sales are $233,000, purchases are $198,000, and ending inventory is $81,000. What is the company's cost of goods sold? a. $186,000 b. $210,000 c. $221,000 d. $245,000
- Using a perpetual inventory system, the sale of inventory on the account is recorded with a: a) Debit to Cost of Goods Sold. b) Credit to Inventory. c) Credit to Sales Revenue. d) All of the other answers are recorded with the sale of inventory on acc
- Which of the following items is not unique to the financial statements of merchandising companies? (a) Cost of goods sold. (b) Accounts receivable. (c) Merchandise inventory.
- Penno Company reported ending inventories of $23,560,000 in 2017 and $25,790,000 in 2016. Cost of goods sold totaled $142,790,000 in 2017. a. Prepare the journal entry to record the cost of goods sold. b. Set up a T-account for inventory and post the co
- If a firm's beginning inventory is $20,000, purchases are $110,000, and the cost of goods sold is $100,000, what is its ending inventory? a $10,000 b. $130,000 c. $30,000 d. $120,000
- If a company's Cost of goods sold is $161,000 for the period, beginning and ending Inventory balances are $19,500 and $14,500, respectively, and the beginning and ending Accounts Payable balances are $26,500 and $9,000, respectively, what is the amount of
- The Cost of Goods Sold account represents the cost of inventory: a. remaining in a company's inventory account at year-end and classified as ending inventory. b. purchased during the year plus inventory sold. c. sold during the year. d. available for sale
- If budgeted beginning inventory is $8,950, budgeted ending inventory is $10,180, and budgeted cost of goods sold is $10,910, budgeted purchases should be: a. $9,680 b. $730 c. $12,140 d. $1,960 e. $1,230
- If budgeted beginning inventory is $8,700, budgeted ending inventory is $9,880, and budgeted cost of goods sold is $10,660, budgeted purchases should be: a. $9,480 b. $780 c. $1,960 d. $1,180 e. $11,840
- If budgeted beginning inventory is $8,550, budgeted ending inventory is $9,700, and budgeted cost of goods sold is $10,510, budgeted purchases should be: A) $11,660. B) $1,150. C) $9,360. D) $1,96
- The following information concerning merchandise inventory: Beginning Inventory 20 @ $10 Purchase 1 80 @ $20 Purchase 2 100 @ $30 Purchase 3 50 @ $40 Units sold 210 Under the LIFO (last-in, first-out) inventory method, what is the Cost of Goods Sold? A.
- If a company's Cost of Goods Sold is $158,000 for the period, beginning and ending inventory balances are $18,000 and $13,000, and the beginning and ending Accounts Payable balances are $19,000 and $7
- Eagle Resources, Inc., has the following account balances at May 31, 2016. The inventory balance was determined using FIFO Inventory Beginning Balance 10,000 Ending Balance 42,000 Cost of Goods Sold
- The cost of goods sold account represents the cost of inventory: (a) Remaining in a company's inventory account at year end and classified as ending inventory, (b) Purchased during the year plus inventory sold, (c) Sold during the year, (d) Available for
- Using a perpetual inventory system, the purchase of inventory is recorded with a: a) Debit to Inventory. b) Debit to Cost of Goods Sold. c) Credit to Sales Revenue.
- LIFO uses the ................................... unit costs for cost of goods sold on the income statement and the ........................................... unit costs for inventory on the balance sheet.
- What account is debited when overhead is allocated to products? a. Raw Materials inventory b. Goods in Process inventory c. Factory Overhead d. Cost of Goods Sold
- Our company uses a perpetual inventory system. On July 3, we sold merchandise with a cost of $3,000 for $6,500 to a customer on account. The terms of the sale were 2/10, n/30. What account and amount would we credit to record the sales revenue for this tr
- Inventory at the beginning of the year cost $12,400. During the year, the company purchased (on account) inventory costing $79,000. Inventory that had cost $75,000 was sold on account for $91,000. At the end of the year, inventory was counted and its cost
- Inventory at the beginning of the year cost $13,200. During the year, the company purchased (on account) inventory costing $83,000. Inventory that had cost $79,000 was sold on account for $94,200. At the end of the year, inventory was counted and its cost
- Cadzow Inc purchases all of its inventory on credit. On January 1, 2008 Cadzow had $1,750,000 of Inventory. Cost of goods Sold during 2008 was $5,650,000. The beginning and ending balances in Cadzow s
- The cost of goods available for sale is allocated to the cost of goods sold and the: a. beginning inventory. b. cost of goods purchased. c. gross profit. d. ending inventory.
- If budgeted beginning inventory is $8,000, budgeted ending inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted production should be: a. $11,550 b. $11,660 c. $1,400 d. $9,600
- At the beginning of the year, Berkshire Manufacturing had the following account balances: Inventory 2,000 Finished Goods Inventory 8,000 Manufacturing Overhead 0 Cost of Goods Sold 0 Sales Revenue 0
- 4 - Purchased merchandise on account from Winterholt Company at a cost of $65,500, terms 1/15, n/30, FOB shipping point. 7 - Freight charges of $1,720 were paid by the appropriate party on the September 4 purchase of merchandise. What are the entries fo
- Ornamental Iron Works, which uses the FIFO method, began in August with 50 units of iron inventory that cost $40 each. During August, the company completed these inventory transactions: Units Unit Cost Unit Sale price Aug. 3 Sale 40 $70 8 Purchase 80 $44
- Given the following data, what is the cost of goods sold as determined under the FIFO method? Sales revenue 350 units at $35 per unit Beginning inventory 120 units at $15 per unit Purchases 400 units at $20 per unit
- Units Price Beginning inventory 200 $1.20 First purchase 400 $1.30 Second purchase 250 $1.40 Sales 550 $2.00 Assuming a LIFO cost flow, the amount of ending inventory reported on the balance sheet would be a. $240 b. $415 c. $130 d. $370
- Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $67,200. Shore Co. paid freight of $1,800. Journalize the entries for Shore and Blue Star for the sale, purchase, and pa
- Bihary Company has a beginning balance in its inventory account of $2,250, and the ending balance is $1,500. Cost of goods sold is $9,750. According to the cost of goods sold model, what was the amount of inventory purchased during the year?
- Pocras Company buys merchandise on account from Wedell Company. The selling price of the goods is $900 and the cost of the goods sold is $590. Both companies use perpetual inventory systems. Journalize the transactions on the books of both companies.
- In a perpetual inventory system the Cost of Goods Sold account is used: a. only when a cash sale of merchandise occurs. b. only when a credit sale of merchandise occurs. c. whenever there is a sale of merchandise or a return of merchandise sold. d. on
- On October 1, Whaley Company sold merchandise in the amount of $2,000 to Lee Company, with credit terms of 2/10, n/30. The cost of the items sold is $1,380. Whaley uses the perpetual inventory system. Lee pays the invoice on October 8, and takes the appro
- On October 1, Whaley Company sold merchandise in the amount of $5,800 to Lee Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Whaley uses the perpetual inventory system. Lee pays the invoice on October 8, and takes the appro
- On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. The journal entry to record the sale includes a: A. debit Cost of Goods Sold $4,000, credit Me
- The cost of merchandise sold during the year was $50,000. Merchandise inventories were $12,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Usin
- Journalize the following inventory merchandise transactions for the Seller and the Buyer, assuming that both uses the perpetual inventory system. Dec. 1 Seller sold merchandise on account to the buyer
- Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800. a. Journalize Shore Co.'s entry for the sale, purchase, and payment of the amount
- A company, which uses the periodic method, is preparing its year-end journal entry to record cost of goods sold. It debits all of the following accounts except: a. Beginning Inventory b. Cost of Goods Sold c. Purchase Discounts d. None of the above
- A company sold merchandise with a cost of $215 for $390 on the account. The seller uses the perpetual inventory system. The entry to record the cost of merchandise sold would include __________.
- Under the perpetual inventory system, in addition to making the entry to record a sales return, a company would: A) debit Merchandise Inventory and credit Cost of Goods Sold. B) make no additional entry until the end of the period. C) debit Cost of Goo
- If Cost of goods sold is $145,000 and the beginning and ending Inventory balances are $18,000 and $13,000, respectively, inventory purchases equal: A) $132,000 B) $150,000 C) $140,000 D) $145,000
- If the cost of goods sold is $148,800 and the beginning and ending inventory balances are $19,900 and $14,900, respectively, inventory purchases equal: A. $148,800 B. $133,900 C. $153,800 D. $143,800
- If the Cost of Goods Sold is $145,000 and the beginning and ending Inventory balances are $18,000 and $13,000, respectively, inventory purchases equal: A. $145,000. B. $140,000. C. $150,000. D. $132,000.
- Your Corporation uses a LIFO perpetual inventory system. On August 2, 10 units were purchased at $12 per unit. August 18, 15 units were purchased at $14 per unit. On August 29, 12 units were sold. What was the balance in ending inventory after this sale?
- During October, Beidleman Inc. transferred $60,900 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $65,930. Prepare the journal entries to record these transactions.
- When products held in inventory are sold, _______. (a) cost of goods sold is credited (b) work in process inventory is credited (c) finished goods inventory is credited (d) finished goods inventory is debited.
- Given the following data, what is the cost of goods sold? Sales revenue $10,000 Beginning inventory 3,000 Ending inventory 7,000 Purchases of inventory 5,000 a. $1,000 b. $12,000 c. $7,000 d. $9,000 e. $8,000
- A company purchased inventory for $1,100 per unit. The company later sold one unit of the inventory for cash of $1,800. Under the perpetual inventory system, which accounts will be debited to record the sale?
- On Aug. 7, its first day of operations, the company sells $2,035 of merchandise for cash. The cost of the merchandise sold is $875. What accounts are impacted and how much?
- What account is debited when the completely manufactured goods are transferred out of the work in process inventory? a. Raw Materials inventory b. Goods in Process inventory c. Finished Goods inventory d. Cost of Goods Sold
- Cost of goods available for sale minus estimated cost of goods sold yields the estimated: a) ending inventory. b) beginning inventory. c) gross profit. d) cost of goods sold.
- During September, KM Inc. sells 9,800 watches for $300.00 each. The company has the following inventory purchase transactions for September. | Date | Transaction | No. of units | Unit cost | Total cost | 1-Sep | Beginning inventory | 300 | $195.00 | $58
- A company just starting a business made the following inventory transactions in August: Purchase on August 1 300 units $1,560 Sale on August 8 200 units $3,400 Purchase on August 12 400 units $1,340 Sale on August 24 350 units $5,950 Using the LIFO inven
- A company sold merchandise with a cost of $221 for $350 on account. The seller uses the perpetual inventory system. What journal entry is needed to record the cost of merchandise sold?
- The cost of merchandise sold during the year was $50,000. Merchandise inventories were $12,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Usi
- The cost of merchandise sold during the year was $45,504. Merchandise inventories were $13,104 and $8,815 at the beginning and end of the year, respectively. Accounts payable were $7,392 and $3,952 at the beginning and end of the year, respectively. Usin
- The cost of merchandise sold during the year was $65,000. Merchandise inventories were $13,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $7,000 and $5,000 at the beginning and end of the year, respectively. Usin
- Using the following information, what is the amount of net sales? What is the Cost of Goods Sold? Purchases $32,000 Purchase discounts $960 Merchandise inventory September 1 5,700 Merchandise inventory September 30 6,370 Sales returns and allowances 910 S
- The following information is available for a corporation. Purchases $50,000, purchase discount $3,000, Beginning Inventory $20,000, Ending inventory $30,000. What is the cost of goods sold?
- Your company has 100 units in inventory, purchased at $16 per unit. These units have a current market value of $14. The entry to write down the inventory will include a: a. debit to Cost of Goods Sold for $1,400. b. debit to Inventory for $1,400. c. cr
- Sigfusson Supplies reported beginning inventory of 125 units, for a total cost of $2,500. The company had the following transactions during the month: Jan. 6 Sold 20 shovels on account at a selling pr
- Goods available for sale are $40,000; beginning inventory is $16,000; ending inventory is $20,000; and the cost of goods sold is $50,000. What is the inventory turnover?
- Beginning inventory, purchases, and sales data for the month are as follows: Beginning inventory 10 units @ 42 First Purchase 15 units @ $44 Second Purchase 13 units @ $45 Sales 26 units Determine the total cost of ending inventory according to FIFO and L
- The completion of a computer by First Wireless, Inc. would require a debit to which of the following accounts? a) Cost of Goods Sold. b) Work in Process Inventory. c) Finished Goods Inventory. d) Mat
- The inventory records of Beta showed the following transactions for one item of inventory. Sr. No. Transaction Units Unit Cost 1. Opening inventory 30 $19 2. Purchase 45 $20 3. Sale (@$30/unit) 50 4. Purchase 50 $21 5. Sale (@$32/unit) 50 6. Purchase 50 $
- A seller uses a perpetual inventory system, and on April 4, it sells $5,000 in merchandise (its cost is $2,400) to a customer on credit terms of 3/10, n/30. Prepare two journal entries to record the sales transaction. The first journal entry is to record
- Use the following data of Starfish Sales, Inc.: Units Unit Cost Total Cost Units Sold Beginning inventory 22 $ 5 $ 110 Purchase on Apr 25 39 6 234 Purchase on Nov 16 13 10 130 Sales 40 ? ? Starfish Sales' LIFO cost of ending inventory would be: A. $
- Warner Corporation sold $80,000 of merchandise on credit. The merchandise originally cost $55,000. Warner uses the perpetual method of inventory and records the cost of all sales at the time of the sale. Select ALL debits and credits that would be made to
- On March 2, Kwang Company sold $846,000 of merchandise to Sensat Company, terms 3/10, n/30. The cost of the merchandise sold was $594,000. Record the journal entries for the transaction. Account Tit
- Cullumber Company reports the following for the month of June. June 1 Inventory 200 $3 $ 600 12 Purchase 400 7 2,800 23 Purchase 300 10 3,000 30 Inventory 100 Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO.
- Beta Company began operations on March 1 with cash of $100,000. All of March's $200,000 sales were on account. During March, no customer collections occurred. Cost of goods sold was $52,000, and there was no ending inventories or any accounts payables. Us
- Penno company reported ending inventories of $23,560,000 in 2011 and $25,790,000 in 2010. Cost of goods sold totaled $142,790,000 in 2011. (a.) Prepare the journal entry to record cost of goods sold. (b.) Set up a T-account for inventory and post the cost
- Company has a sales budget for next month of $450,000. Cost of goods sold is expected to be 50 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of me
Explore our homework questions and answers library
Browse
by subject