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8 January, 23:59

Journalize the following sales transactions for King Company.

King Company sold merchandise inventory for $150. The cost of the inventory was $90. The customer paid cash.

King Company was running a promotion and the customer received a $ 20 award at the time of sale that can be used at a future date on any King Company merchandise.

Begin by preparing the entry to journalize the sale position at the transaction. Do not record the expense related to the sale.

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Answers (1)
  1. 9 January, 01:07
    0
    Descrition Dr. Cr.

    Cash 150

    Sales Revenue 130

    Unearned Revenue 20

    Explanation:

    Cash Rceived is recorded as full but the reward amount is recorded as unearned revenue as the customer has option to use it in future. Sales Revenue of $130 is recorded which is the net of cash received and reward amount.
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