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

Options:

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

Correct Answer: Debit Cash, Credit Sales Revenue

Solution:

The correct entry for the sale of inventory at a profit is to debit Cash and credit Sales Revenue.