- Which accounts should be credited or debited using journal entries? Purchased

Question

- Which accounts should be credited or debited using journal entries?

Purchased indirect materials on account from Kraftsman Air and Gas and charged the items to Manufacturing Overhead (185). The net invoice cost is $300. Kraftsman Air & Gas extends credit terms of 2/15, n/30. JOB 29 was delivered to customer Edward Kerry. A cashier's check for $8,742.00 was received at the delivery site. When JOB 29 was completed on June 1, a debit to the Cost of Goods Sold and a credit to Raw and In-Process Inventory was made for $5,824.80. Record the cash-sale entry.

Explanation / Answer

journal entries:

Date Accounts Titles and explanation Debit $ Credit $ June 4 Manufacturing Overhead 300 Accounts Payable 300 (being indirect material purchased from Kraftman air and gas) June 5 Cash 8742 Sales revenue 8742 (sales and delivery of Job 29) Cost of Goods Sold 5824.80 Finished goods 5824.80 (transfer of cost of goods) June 5 Advertisement Expense 340 Cash 340 (being advertisement expenses paid) June 5 Cash 5000 Dividend Income 5000 (being dividend income received from JL Software, Inc. on 10000 shares)) June 6 Dividend Payable 15000 Cash 15000 (being cash dividend payable now paid on 25000 shares)

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