Wednesday, January 16, 2008

Merchandising Accounting Journal Entry

What is Merchandising Company?

Companies that earn revenue by selling inventory are either manufacturing or merchandising companies. Inventory includes items a company intends for sale to customers.

Journal Entry for Merchandising Company

The follow is an accounting example to show how to record the sale of an item in a merchandising company. An item is sold for $45 while the actual cost expense is $25.



Accounting Ledger

DEBIT

CREDIT

Cash
45.00

Sales

45.00


Accounting Ledger

DEBIT

CREDIT

Cost of Goods Sold
25.00

Inventory

25.00




Additional Accounting Examples:

No comments:

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.