Question

On August 24, Sheffield Corporation purchased inventory on account from Bramble Inc. The selling price of the goods is $35,800 and the cost of goods sold is $16,620. Both companies use perpetual inventory systems. Record the above transactions on the books of both companies. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

Sheffield Corporation:

Date: August 24

Account Debit Credit

Inventory 16,620

Accounts Payable 16,620

Bramble Inc.:

Date: August 24

Account Debit Credit

Accounts Receivable 35,800

Sales Revenue 35,800

Cost of Goods Sold 16,620

Inventory 16,620

Step-by-step explanation: