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26 January, 04:07

On March 2, Concord Corporation sold $821,000 of merchandise on account to Sarasota Company, terms 2/10, n/30. The cost of the merchandise sold was $613,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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  1. 26 January, 05:50
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    I strongly believe that the question requires the necessary journal entries to record the sale of the merchandise as well as the cost of the merchandise.

    For the sales value the journal entries are:

    Dr Accounts receivable $821,000

    Cr Sales revenue $821,000

    Being sale of merchandise on account

    For the cost of goods sold:

    Dr Cost of goods sold $613000

    Cr Inventory $613,000

    Being of cost of merchandise transferred to costs of good sold

    Explanation:

    The cash discount offered of 2% cannot be recorded until the payment is received within the discount period.

    There is also the need to move inventory from inventory account to cost of goods sold
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