ABC Corporation sold merchandise worth $10,000 on credit with payment terms of 60 days. The cost of the merchandise sold was $6,000. The company uses the perpetual inventory system. Prepare the journal entries to record the sale and subsequent collection after 40 days.

ABC Corporation sold merchandise worth $10,000 on credit with payment terms of 60 days. The cost of the merchandise sold was $6,000. The company uses the perpetual inventory system. Prepare the journal entries to record the sale and subsequent collection after 40 days.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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