Respuesta :
Answer:
Here is the complete question: Pharoah Company buys merchandise on account from Flounder Company. The selling price of the goods is $1,450, and the cost of the goods is $1,100. Both companies use perpetual inventory systems. Journalize the transaction in the books of both companies.
Given: Selling price of goods is $1450
Cost of goods sold is $1100
Perpetual inventory system is a method of accounting for immediate recording inventory transaction through the use of technology. It is considered as more efficient method of Inventory management system.
Record of transaction in the books of Pharoah company:
Inventory accounts Dr ---------- $1450
Account payable Cr---------$1450
Record of transaction in the books of Flounder company:
Account receiveable Dr ---------- $1450
Sales revenue Cr---------$1450
Cost of goods sold Dr ------------- $1100
Inventory Cr-----------$1100
