On Saturday, June 30, BD Pool Supplies sold merchandise to E. Luang on account.
ID: 2361457 • Letter: O
Question
On Saturday, June 30, BD Pool Supplies sold merchandise to E. Luang on account. The sales price was $7,900, and the cost of goods sold was $6,500. The sales revenue was recorded immediately, but the entry recording the cost of goods sold was dated Monday, July 2. As a result, net income for June was:
On Saturday, June 30, BD Pool Supplies sold merchandise to E. Luang on account. The sales price was $7,900, and the cost of goods sold was $6,500. The sales revenue was recorded immediately, but the entry recording the cost of goods sold was dated Monday, July 2. As a result, net income for June was:
Explanation / Answer
Overstated by $7,900. after july 2 the income will be reduced to 1400