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What is the journal entry to record the sale of inventory at a profit?

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Question: What is the journal entry to record the sale of inventory at a profit?

Options:

  1. Debit Cash, Credit Sales Revenue
  2. Debit Cost of Goods Sold, Credit Inventory
  3. Debit Cash, Credit Inventory
  4. Debit Sales Revenue, Credit Cash

Correct Answer: Debit Cash, Credit Sales Revenue

Solution: 

The correct entry is to debit Cash and credit Sales Revenue, reflecting the cash received from the sale.

What is the journal entry to record the sale of inventory at a profit?

Practice Questions

Q1
What is the journal entry to record the sale of inventory at a profit?
  1. Debit Cash, Credit Sales Revenue
  2. Debit Cost of Goods Sold, Credit Inventory
  3. Debit Cash, Credit Inventory
  4. Debit Sales Revenue, Credit Cash

Questions & Step-by-Step Solutions

What is the journal entry to record the sale of inventory at a profit?
  • Step 1: Identify the cash received from the sale of inventory.
  • Step 2: Record the cash received by debiting the Cash account.
  • Step 3: Determine the amount of sales revenue generated from the sale.
  • Step 4: Record the sales revenue by crediting the Sales Revenue account.
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