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To pay off Inventory Purchases, When discount isn’t taken
Dr. Accounts Payable
Cr. Cash
Sale of Merchandise: 2 entries
Dr. Accounts Receivable
Cr. Sales
Dr. COGS
Cr. Inventory
Sales Returns and allowanaces
Dr.Sales Returns & allowances
Cr. Accounts Receivable
Dr. Inventory
Cr. COGS
Sales Discounts (when discount is taken)
Dr. Cash
Dr. Cash/Sales Discount
Cr. Accounts Receivable
To record receipt of payment from sale, when discount is not taken
Dr. Cash
Cr. Accounts Receivable
