Minx, Inc. sold 1,000 of goods that cost 600 to a customer on account. The journal entry to record this transaction includes ________.
A) a debit to Accounts receivable of 400 and credit to Sales of 400
B) debits to Accounts receivable of 1,000 and Cost of goods sold of 600 and credits to Revenue of 1,000 and Inventory of 600
C) a debit to Accounts receivable of 1,000 and a credit to Inventory of 1,000
D) a debit to Accounts receivable of 1,000 and a credit to Cost of goods sold of 1,000
Question 2
The journal entry to close revenue accounts includes
a. debiting the revenue accounts and crediting Income Summary.
b. debiting Income Summary and crediting the revenue accounts.
c. debiting the revenue accounts and crediting Cash.
d. debiting the revenue accounts and crediting the drawing account.
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