April 4, 2020 Smith and West, who uses the Perpetual inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, PI-26. Terms: 5/10 n/30. On April 10, Smith and West sold 200 widgets to Mr. T on account at a price of $14 each. HST was collected. Terms: 5/10 n/30. Debit - A/R - Mr. T $3,164 </> Credit - Sales $2,800, HST Payable $364 25) What would be the 2nd journal entry to record this transaction? 1.Debit - Cost of Goods Sold $1,000 </> Credit - Inventory $1,000 2.Debit - Inventory $1,000 </> Credit - Cost of Goods Sold $1,000 3.Debit - Cost of Goods Sold $1,000 </> Credit - Purchases $1,000 4.Debit - Cash $1,000 </> Credit - Inventory $1,000
April 4, 2020 Smith and West, who uses the Perpetual inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, PI-26. Terms: 5/10 n/30. On April 10, Smith and West sold 200 widgets to Mr. T on account at a price of $14 each. HST was collected. Terms: 5/10 n/30. Debit - A/R - Mr. T $3,164 </> Credit - Sales $2,800, HST Payable $364 25) What would be the 2nd journal entry to record this transaction? 1.Debit - Cost of Goods Sold $1,000 </> Credit - Inventory $1,000 2.Debit - Inventory $1,000 </> Credit - Cost of Goods Sold $1,000 3.Debit - Cost of Goods Sold $1,000 </> Credit - Purchases $1,000 4.Debit - Cash $1,000 </> Credit - Inventory $1,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
April 4, 2020 Smith and West, who uses the Perpetual inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, PI-26. Terms: 5/10 n/30. On April 10, Smith and West sold 200 widgets to Mr. T on account at a price of $14 each. HST was collected. Terms: 5/10 n/30. Debit - A/R - Mr. T $3,164 </> Credit - Sales $2,800, HST Payable $364
25) What would be the 2nd journal entry to record this transaction?
1.Debit - Cost of Goods Sold $1,000 </> Credit - Inventory $1,000
2.Debit - Inventory $1,000 </> Credit - Cost of Goods Sold $1,000
3.Debit - Cost of Goods Sold $1,000 </> Credit - Purchases $1,000
4.Debit - Cash $1,000 </> Credit - Inventory $1,000
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