Dazzle, Inc. produces beads for jewelry making use. The following information su

Question

Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:

Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.

Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000.

Debit Cost of Goods Sold $444,000; credit Sales $444,000.

Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000.

Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.

Direct materials used $87,000 Direct labor used 160,000 Predetermined overhead rate (based on direct labor) 155% Goods transferred to finished goods 432,000 Cost of goods sold 444,000 Credit sales 810,000

Explanation / Answer

Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.

Goods sold on credit to Debtors having a cost of goods , reduces the "inventory account balance"(which is at cost) , and record the "cost of goods sold" like an expenses.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.