This video shows the journal entry for recording a sale. The journal entry depends on 3 things: (1) Was it a credit sale or a cash sale? If it was a credit sale, you'll need to debit accounts receivable instead of the cash account when recording the sale (2) Was it the sale of goods or reduces? If it was the sale of goods, you'll need to remove the inventory from the books by crediting the inventory accounting and debiting cost of goods sold (3) Was any sales tax collected? If sales tax was collected, then you'll need to record a liability (sales tax payable) Introduction 0:00 Example 1 (sale of goods on credit, no sales tax) 0:33 Example 2 (sale of goods for cash, with a sales tax) 2:02 Example 3 (sale of services for cash, no sales tax) 3:52 — Edspira is the creation of Michael McLaughlin, an …
