On its first day of operations, the company sells $41,850 of merchandise for cash. The cost of the m

Accounting
Tutor: None Selected Time limit: 1 Day

On its first day of operations, the company sells $1,850 of merchandise for cash. The cost of the merchandise sold is $775. What accounts are impacted and by how much.

Oct 1st, 2015

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The company sells the merchandise for cash so the company's sales account increase and also cash account is increase with the amount of $1,850

Cash Account(Dr)                   $1,850

        Sales account(Cr)                    $1,850

The company merchandise account decrease because company has sold the merchandise and the cost of sold account increase because of good sold with the amount of $775.

Cost of sold account(Dr)               $775

      Merchandise account(Cr)              $775

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Oct 2nd, 2015

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