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.
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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
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
Cost of sold account(Dr) $775
Merchandise account(Cr) $775
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