The one characteristic that all entries recorded in a cash receipts journal have

Question

The one characteristic that all entries recorded in a cash receipts journal have in common is
a) a credit to cash account
c) that they originate from the sales of merchandise
c) a debit to cash account

During July, the following purchases and sales were made by Big Dan Company. There was no beginning inventory. Big Dan Company uses a perpetual inventory system.
Purchases Sales
July 3 20 units @ $12 July 13 25 units
11 20 units @ $13 July 22 10 units
20 20 units @ $15

Under FIFOmethod , the cost of goods sold for each sale is
July 13 July 22
A $300 $120
B $305 $130
C $325 $130
D $375 $150

Explanation / Answer

1. c) a debit to cash account 2. Purchases Sales July 3 20 units @ $12 July 13 25 units = 20*$12+5*$13 = $305 11 20 units @ $13 July 22 10 units = 10*$13 = $130 20 20 units @ $15 So Ans is B $305 $130

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