Revenue minus expenses equals net income. Indicate whether the ...

[swpotter12]

Revenue minus expenses equals net income.
 
  Indicate whether the statement is true or false

Question 2

On May 1, 2011, Tim's Ware sold merchandise for 1,000. Twenty percent was paid in cash and the rest was sold on account. The merchandise originally cost Tim's Ware 600. No references are needed.
 
  a. Record the sale.
  Date Transaction Debit Credit
 
  b. Record the cost of the sale.
  Date Transaction Debit Credit

[Dunkey]

Answer to Question 1

TRUE

Answer to Question 2

a.
Date Transaction Debit Credit
5/1/11 Cash 200
Accounts receivable 800
Sales 1,000
To record sales

b.
Date Transaction Debit Credit
5/1/11 Cost of goods sold 600
Inventory 600
To record the cost of the sale