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(b) Enter the transaction in that journal.:
Credit SalesSales is credited (increased) for the amount of the sale at the retail price, $5,000. Second entry:Debit Cost of Goods SoldCost of Goods Sold is debited (increased) for the cost of the merchandise sold, $3,000Credit Merchandise InventoryMerchandise Inventory is credited (decreased) due to having less inventory on hand after the sale, $3,000. Special journal process:Enter the retail (selling) price, $5,000, into the Accounts Receivable, Dr./Sales, Cr. column. Enter the cost, $3,000, into the COGS, DR/Merchandise Inventory Cr column.Any time that Accounts Receivable or Accounts Payable is debited or credited, the subsidiary ledger account is typically updated immediately. In this problem, $5,000 is typically posted immediately to GoneCompany's accounts receivable subsidiary ledger account, and a checkmark, , is entered into thecolumn, indicating that the postingto the subsidiary ledger has been completed. All other amounts from this transaction will be posted at the end of the month as a column total.1.Special journals: Seller's entriesExamine the following transaction for Cellar Company, which uses the gross method of recording sales of merchandise and a perpetual inventory systemTransaction:On April 7, Cellar Company received the amount due from Gone Company. Gone had previously purchased goods on account, for a price of $10,000, with terms, 1/10 n/30. Gone paid within the discount period. There were no returns related to this purchase. Required:(a) Select the appropriate special journalin which the transaction should be entered.:::.
(b) Enter the transaction in that journal.Select the special journal:::