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11 September, 12:47

Garth Company sold goods on account to Kyle Enterprises with terms of 2/10, n/30. The goods had a cost of $600 and a selling price of $1,100. Both Garth and Kyle use a perpetual inventory system.

Required:

A) Record both the sale on the books of Garth Company and the purchase on the books of Kyle Enterprises

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  1. 11 September, 14:12
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    This are the record of both the sale on the books of Garth Company and the purchase on the books of Kyle Enterprises

    Journal entry on Gerth Company Books

    Dr Account receivable 1,100

    Cr Sales 1,100

    Cr Cost of goods sold 600

    Cr Inventory 600

    Journal entry on Kyle's books:

    Dr Inventory 1,100

    Cr Account payable 1,100
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