Langhurst Company sold hardware for $12,000 cash and $18,000 of hardware to credit customers. Which of the following is the correct journal entry to record this transaction?

Question

Business

Hazel Rivers

5 January, 22:51

Langhurst Company sold hardware for $12,000 cash and $18,000 of hardware to credit customers. Which of the following is the correct journal entry to record this transaction?

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Answers (1)

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Alayna Key · Answer 1

Cash A/c Dr $12,000

Account receivable A/c Dr $18,000

To Hardware revenues A/c $30,000

(Being the sale of hardware is recorded)

Explanation:

The journal entry is shown below:

Cash A/c Dr $12,000

Account receivable A/c Dr $18,000

To Hardware revenues A/c $30,000

(Being the sale of hardware is recorded)

Since the sale is taken which increase the current asset i. e cash account and the account receivable by $12,000 and $18,000 respectively so we debited it and the revenue is an income so we credited it