Question

red hot sells its industrial sized fire pits to local hotels. each industrial sized fire pit is soldfor $3,200 (cost $1,900) on credit with terms 2/20, net/60. prepare the journal entries forthe sale of 1 industrial sized fire pit on november 1, 2023, and upon payment, assumingthe hotel customer paid on november 30, 2023. assume the company records sales net.journal entry descriptions are not required.

Answer 1

The journal entries for the sale of an industrial-sized fire pit on November 1, 2023, and upon payment on November 30, 2023, can be prepared as follows.

Step-by-step explanation:

The journal entries for the sale of 1 industrial-sized fire pit on November 1, 2023, and upon payment on November 30, 2023, can be prepared as follows:

November 1, 2023:

1. Accounts Receivable - Hotel Customer: $3,200 (debit)
2. Sales Revenue: $3,200 (credit)
3. Cost of Goods Sold: $1,900 (debit)
4. Inventory: $1,900 (credit)

November 30, 2023:

1. Accounts Receivable - Hotel Customer: $3,200 (credit)
2. Cash: $3,200 (debit)