question archive Maxie's Game World sold games to a customer on credit for $2
Maxie's Game World sold games to a customer on credit for $2
Subject:BusinessPrice:2.88 Bought3
Maxie's Game World sold games to a customer on credit for $2.600, terms 1/10, n/ 30 and the cost of the games was $1,/00 recording the sales transaction in its sales journal, Maxie's would enter:
A) S1,700 in the Accounts Receivable Dr/Sales Cr. column and $2,600 in the Cost of Goods Sold Dr/Inventory Cr. column
B) $2,600 in the Accounts Receivable Dr/Sales Cr. column and $2,600 in the Cash Cr. column.
C) $2,600 in the Accounts Receivable Dr/Sales Cr. column and $1,700 in the Cost of Goods Sold Dr/Inventory Cr. column.
D) $2.600 in the accounts Receivable Dr/Sales Cr. column and $1,700 in the Accounts Payable Dr./Purchases Cr. Column.
E) $1,700 in the Accounts Receivable Dr/Sales Cr. column and $2.600 in the Other Accounts Dr. column.
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Correct Answer: Option C) $2,600 in the Accounts Receivable Dr/Sales Cr. column and $1,700 in the Cost of Goods Sold Dr/Inventory Cr. column.
Explanation:
The journal entry to be made for the given transaction is:
| General Journal | Debit | Credit |
| Accounts receivable | $2,600 | |
| Cost of goods sold | $1,700 | |
| Sales revenue | $2,600 | |
| Merchandise inventory | $1,700 |
