Question

What is the journal entry for the sale of 1,000 Tri-Box Systems to CompStores on January 1, 2019, at a price of $250 per system?

Answer 1

The journal entry for the sale of 1,000 Tri-Box Systems to CompStores on January 1, 2019, at a price of $250 per system would be Sales Revenue of $250,000 and Accounts Receivable of $250,000.

Step-by-step explanation:

The journal entry for the sale of 1,000 Tri-Box Systems to CompStores on January 1, 2019, at a price of $250 per system would be:

1. Sales Revenue (accounts receivable or cash) $250,000
2. Accounts Receivable (or cash) $250,000

In this entry, Sales Revenue represents the income earned from the sale of the Tri-Box Systems, and Accounts Receivable (or cash) represents the amount that the company expects to receive from CompStores for the sale. The total sales revenue is calculated by multiplying the number of systems sold (1,000) by the price per system ($250).