A customer purchased an item on credit which journal entry should be made to record this purchase? Journal EntriesAccounts Receivable Sales Revenue Debit $ 250 Credit $ 250Accounts Receivable Customer Payment Received Debit $ 250 Credit $ 250Accounts Payable Supplies Expense Debit $ 237 Credit $ 237Accumulated Depreciation Depreciation Expense Debit $ 725 Credit $ 725 Prepaid Rent Rent Expense Debit $1,250 Credit $1,250

Question

Hugo Barnes

Business

30 August, 13:08

A customer purchased an item on credit which journal entry should be made to record this purchase? Journal EntriesAccounts Receivable Sales Revenue Debit $ 250 Credit $ 250Accounts Receivable Customer Payment Received Debit $ 250 Credit $ 250Accounts Payable Supplies Expense Debit $ 237 Credit $ 237Accumulated Depreciation Depreciation Expense Debit $ 725 Credit $ 725 Prepaid Rent Rent Expense Debit $1,250 Credit $1,250

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Answers (1)

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Adam Doyle · Answer 1

Accounts Receivable Sales Revenue Debit $ 250 Credit $ 250

Explanation:

The journal entry is shown below:

Accounts receivable A/c Dr $250

To Sales revenue A/c $250

(Being the goods sold on credit)

We simply credited the revenue account as the sales is takes place whereas the account receivable should be debited as the goods sold on credit

Hence, no other given entry should be considered