Question

On January 23, Marco Company sold inventory costing $23,000 to customers on account for a price of $44,000. Which ONE of the following would be included in the journal entry necessary to record this transaction on January 23?
a. DEBIT to Cash $44,000
b. CREDIT to Cash $44,000
c. DEBIT to Cost of Goods Sold $44,000
d. DEBIT To Sales Revenue $44,000
e. DEBIT to Accounts Receivable $44,000
f. DEBIT to Inventory $23,000

Answer 1

Answer:

e. DEBIT to Accounts Receivable $44,000

Explanation:

The accrual journal entry to record the sale involves a debit to the accounts receivable account and a credit to sales revenue;  

 

Income 44000

Costing 23000

 

e. DEBIT to Accounts Receivable $44,000