Ask Question
BusinessBusiness
1 January, 21:02

On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system and the gross method. The journal entry or entries that Shilling will make on May 1 is:a. Sales 5,800 Accounts receivable 5,800 b. Merchandise Inventory 5,800 Accounts payable 5,800 c. Accounts payable 5,800 Sales 5,800 d. Merchandise Inventory 5,800 Cash 5,800

+4
Answers (1)
  1. 2 January, 00:01
    0
    The correct answer is:

    Debit: Account receivable $5,800

    Credit: Sales revenue $5,800

    Debit: Cost of goods sold $4,000

    Credit: Merchandise inventory $4,000

    Explanation:

    On 1st May

    Upon sale of inventory on credit

    Debit: Account receivable $5,800

    Credit: Sales revenue $5,800

    On 1st May

    To record cost of goods sold of merchandise inventory:

    Debit: Cost of goods sold $4,000

    Credit: Merchandise inventory $4,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the items sold ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Suppose two factors are identified for the U. S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 5% and IR 7%. A stock with a beta of 1 on IP and 0.
Answers (1)
Use the following information to compute the cost of direct materials used for the current year. Assume the raw materials inventory account is used only for direct materials. (Assume no indirect materials.
Answers (1)
What is a check written by a bank on its own funds called?
Answers (1)
Undifferentiated marketing would be defined as: a. The full positioning of a brand; the full mix of benefits upon which it is positioned. b.
Answers (1)
about 13 to 16 guests of true or false every 100 are purposefully out to scam us and get something for free
Answers (1)
New Questions in Business
Regan grows flowers and makes ceramic vases. Jayson also grows flowers and makes ceramic vases. Regan can produce 3 times as many vases in a day as Jayson, and Regan can grow twice as many flowers in a month as Jayson.
Answers (2)
Danny "Dimes" Donahue is a neighborhood's 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $1.50 each, he sells 100. At a price of $1 each, he sells 300. a.
Answers (1)
Starting last December, one of the three major credit-score trackers, Experian, added paying monthly rent as one of its criteria for calculating a credit score.
Answers (1)
Odell's Furniture has a manufacturing facility in Rigby, Idaho that has an effective capacity of 106 furniture pieces per day and produces 88 furniture pieces per day. What is the facility's efficiency rate? a. Write your answer as a percentage. b.
Answers (1)
Benefits are offered by employers to attract good employees. a. True b. False
Answers (1)
Home » Business » On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system and the gross method.
Sign Up Forgot Password?