Record the sale of goods for $64,600 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Cash 64,600 blank 64,600 fill in the blank in the transaction... Record the sale of goods for $64,600 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Cash 64,600 blank 64,600 fill in the blank in the transaction journal.
Understand the Problem
The question is asking for the accounting entry to record a cash sale of goods for $64,600. In this case, we need to identify the appropriate accounts for debiting and crediting. The sale of goods impacts the revenue account.
Answer
Debit Cash $64,600; Credit Sales Revenue $64,600
Answer for screen readers
The journal entry for the cash sale of goods for $64,600 is:
- Debit Cash $64,600
- Credit Sales Revenue $64,600
Steps to Solve
- Identify the accounts involved
In this case, we need to recognize that the cash sale involves increasing the cash account and recognizing revenue.
- Record the cash increase
Since we are receiving cash, we will debit the cash account for the amount of the sale. The cash account increases because we are receiving cash.
$$ \text{Debit Cash} = 64,600 $$
- Record the revenue increase
We also need to record the revenue from the sale. This will be done by crediting the sales revenue account, as our revenue account increases with the sale.
$$ \text{Credit Sales Revenue} = 64,600 $$
- Complete the journal entry
Combine the debits and credits into a complete journal entry:
- Debit Cash: $64,600
- Credit Sales Revenue: $64,600
This reflects the increase in cash and revenue due to the cash sale of goods.
The journal entry for the cash sale of goods for $64,600 is:
- Debit Cash $64,600
- Credit Sales Revenue $64,600
More Information
This entry reflects the fundamental accounting principle of double-entry bookkeeping where every transaction affects at least two accounts. In this case, cash increases while revenue increases by the same amount, keeping the accounting equation balanced.
Tips
- A common mistake is forgetting to make an equal debit and credit entry; always ensure that the total debits equal total credits.
- Another mistake is confusing what account to debit versus credit; remember, debiting cash increases it, while crediting sales revenue acknowledges the sale.
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