can you guys do this entry plz
1)there is atransaction in date 2 acampny bought three identical prints for $1500 in total,on credit,from vv Gogh
2) then n date 5 they sold one of the prints for $850 on credit LDvinci,
how would the transaction entry,i couldnt do this
For the purchase
Dr Purchases (or inventory) 1500 Cr VV Gogh 1500
For the sale
Dr LDvinci 850 Cr Sales 850
To record the cost of the sales
Dr Cost of sales 500 Cr Purchases (or inventory) 500
Dr equipment. 1500. Cr Payables. 1500
Dr Bank 850. Cr equipment. 500
Cr profit on sale. 350
No. The sale is on credit so cash/bank is not affected.
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