Merchandise bookkeeping with methods stated.
Purchases debit Inventory. Each sale records revenue at price and cost of goods sold at cost.
Counts reveal shrinkage, which is removed from inventory as the exercise or policy states.
On Mar 11, 2026, Little Fern Online Shop sells goods on account for $1,590.00. The goods cost $954.00. It uses a perpetual system. Record both effects in one compound entry.
| Accounts Receivable | $1,590.00 | |
| Sales Revenue | $1,590.00 | |
| Cost of Goods Sold | $954.00 | |
| Inventory | $954.00 |
Revenue is recorded at the selling price; inventory leaves at cost and becomes Cost of Goods Sold.
Gross sales are $20,000.00, sales returns are $200.00, and cost of goods sold is $6,500.00. Compute net sales and gross profit.
Net sales $19,800.00; gross profit $13,300.00.
Item 1 of 2
On Mar 11, 2026, Little Fern Online Shop sells goods on account for $1,830.00. The goods cost $1,098.00. It uses a perpetual system. Record both effects in one compound entry.
Inventory practice →FIFO worksheet →
Original content. Figures are fictional; examples are generated and checked by our accounting engine. Updated 2026-10-29.