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:

Multiple Choice

a. Debit Accounts Receivable $826,200; credit Cost of Goods Sold $826,200.

b. Debit Accounts Receivable $826,200; credit Sales $373,200; credit Finished Goods Inventory $453,000.

c. Debit Cost of Goods Sold $453,000; credit Sales $453,000.

d. Debit Finished Goods Inventory $453,000; debit Sales $826,200; credit Accounts Receivable $826,200; credit Cost of Goods Sold $453,000.

e. Debit Accounts Receivable $826,200; credit Sales $826,200; debit Cost of Goods Sold $453,000; credit Finished Goods Inventory $453,000.

Direct materials used $ 66,000 Direct labor used $ 121,400 Predetermined overhead rate (based on direct labor) 160 % Goods transferred to finished goods $ 441,000 Cost of goods sold $ 453,000 Credit sales $ 826,200

Explanation / Answer

Journal entry to record sales:

Answer is : e. Debit Accounts Receivable $826,200; credit Sales $826,200; debit Cost of Goods Sold $453,000; credit Finished Goods Inventory $453,000.

Debit accounts receivable $ 826,200 Credit sales $ 826,200 (To record sales ) Debit Cost of goods sold $ 453,000 Credit Finished goods inventory $ 453,000 (To record cost of goods sold)

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