Journal Entries

Received Cash from the owner as an investment

Dr. Cash

Cr. Capital

Received cash for sales

Dr. Cash

Cr. Sales

Purchase supplies on account

Dr. Supplies

Cr. Accounts Payable

Purchase merchandise on account (Periodic Inventory System)

Dr. Purchases

Cr. Accounts Payable

Sold merchandise on account (Perpetual Inventory System)

Dr. Accounts Receivable

Cr. Sales

Dr. Cost of Good Sold

Cr. Inventory

Sold merchandise on account (Periodic Inventory System)

Dr. Accounts Receivable

Cr. Sales

The business owner withdrew cash from the business

Dr. Withdrawals

Cr. Cash

Paid cash creditors on account

Dr. Accounts Payable

Cr. Cash

Collected an account receivable in full

Dr. Cash

Cr. Accounts Receivable

Paid cash for rent on building

Dr. Rent Expense

Cr. Cash

Paid freight charges on merchandise received (Periodic Inventory System)

Dr. Freight-In

Cr. Cash

Paid freight charges on merchandise received (Perpetual Inventory System)

Dr. Inventory

Cr. Cash

Returned purchased merchandise on credit (Periodic Inventory System)

Dr. Accounts Payable

Cr. Purchases Returns and Allowances

Purchased merchandise on credit, FOB shipping point, including freight costs (Periodic Inventory System)

Dr. Purchases, Freight-In

Cr. Accounts Payable

Purchased merchandise on credit, FOB shipping point, including freight costs (Perpetual Inventory System)

Dr. Inventory

Cr. Accounts Payable

Cash sales- Exclusive of VAT

Dr. Cash

Cr. Sales, Output Tax

Sales on Account - Exclusive of VAT

Dr. Accounts Receivable

Cr. Sales, Output Tax

Sales on Account - Inclusive of VAT

Dr. Accounts Receivable

Cr. Sales, Output Tax

Purchases on Account - Inclusive of VAT

Dr. Purchases, Input Tax

Cr. Accounts Payable

Cash Purchase - Exclusive of VAT

Dr. Purchases, Input Tax

Cr. Cash