Accounting Class Homework Help Please!?

Question

To journalize a sale,
DRCash
CRSales
DRCost of Goods Sold
CRMerchandise Inventory

To journalize a purchase,
DRPurchases
CRCash
DRMerchandise Inventory
CR??

What is the credit? I haven’t sold it yet, so it can’t be COGS. My mind is a blank (too much homework!)

Answer 1

I dropped out of school in the fifth grade, and I turned out ok.



It's probably not a smart idea to put your number on the internet.

Answer 2

Usually a purchase is just

DR Merchandise Inventory (asset)
CR Cash

So perhaps you need to eliminate the purchase.

so, the credit would be Purchase.

When you spend cash you will have an asset or an expense. This case, you have an asset (merchandise inventory). Purchase is the expense. You need to elimate the expense.

Answer 3

Okay the way i remember it is that:

Dr Purchases
Cr Cash

There is no Second DR/CR as you don't need to work out the Cost of goods sold

Hope i helped

Answer 4

In college, you're expected to do your own homework.