Pocras Company buys merchandise on account from Wedell Company. The selling pric

Question

Pocras Company buys merchandise on account from Wedell Company. The selling price of the goods is $900 and the cost of the goods sold is $590. Both companies use perpetual inventory systems. Journalize the transactions on the books of both companies. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Pocras Company Wedell Company (To record sale of merchandise) Click here if you would like to Show Work for this question

Explanation / Answer

Pocras books: Debit: Merchandise inventory 900 Credit: Accounts payable 900 Wedell's books: Debit: Accounts receivable 900 Credit: sales revenue 900 Debit: Cost of goods sold 590 Credit: Merchandise inventory 590

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