October 30, 2016

Industrial Engines

Sales and Cost of Sales

INDUSTRIAL ENGINES ACCOUNT
SALES   5491
COST OF SALES   6491


ACCOUNT EXPLANATION

Sales: Selling price of new and used industrial engines sold.

Cost of Sales: Inventory value of above engines sold.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers

TRANSACTIONS

  Jrnl. Dr. Cr.
  Industrial engine sold on open account PS
    Accounts Receivable—Parts 1120
      Sales—Industrial Engines 5491
    Cost of Sales—Industrial Engines 6491
      Inventory—Industrial Engines 1444
COMMENTS

  • Cost data should be obtained from subsidiary inventory records.