inventory ready to sell are included as part of Inventory account with a debit .
Jax Company uses a perpetual inventory system and on November 30 purchased merchandise for which it must pay the shipping charges . Which of the following is one part of the required journal entry when Jax pays the shipping charges of $ 200 ?
Question 4
Sales Discounts is a contra account to Sales Revenue . It is reported on the income statement as a deduction from Sales Revenue .
Question 5
Two entries are required . One will record the sale with a debit to cash and a credit to sales revenue . The second entry is to reduce the inventory ; debit cost of goods sold and credit inventory .
Which statement is true when recording the sale of goods for cash in a perpetual inventory system ?
Question 6
Sales less cost of goods sold equals gross profit . Subtracting operating expenses from gross profit equals net income .