Recording Transactions (where does this go?)

Question 1

You sell $1,000 on credit

Answer 1

Accounts Rec: +$1,000 Sales Rev: +$1,000

Question 2

You sell $1,000 of goods (cost=$650.00)

Answer 2

Inventory: ($650.00) COGS: ($650.00)

Question 3

You produce 500 units at cost of $3,250

Answer 3

Cash: ($3,250)
Inventory: +$3,250

Question 4

Recording Inventory Purchases

Record the transaction of purchasing (cash) $500.00 of materials from suppliers

Answer 4

Cash: ($500.00)
Inventory: +$500.00

Question 5

Operating Payables

Answer 5

Any outstanding operating expenses not yet paid

How you record operating expenses during a period when still holding invoice without issuance of payment

ex. received utilities invoice of $1,600 but pay following month
utilities payable - $1,600 utilities - $1,600

Question 6

Operating Expenses

Answer 6

Indirect costs

recorded at the time that the benefit is received