Journal Entry for Cost of Goods Sold

Cost of Goods Sold is an expense that is debited when a company sells inventory.  For example, let's say a retailer sold inventory (with an original cost of $35) to a customer for $60 cash.  Upon making the sale, the retailer would debit Cost of Goods Sold for $35 and credit Inventory for $35.  In addition, the retailer would credit Sales Revenue for $60 and debit cash for $60.  

Both Cost of Goods Sold and Sales Revenue would appear on the Income Statement.

Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD.  The goal of Michael's life is to increase access to education so all people can achieve their dreams.  To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com

To follow Michael on Twitter, visit Twitter: Prof_McLaughlin

To follow Michael on Facebook, visit Facebook: Prof.Michael.McLaughlin—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
*Patreon: prof_mclaughlin
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thinkific.com
—
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast...
* Spotify: https://open.spotify.com/show/4WaNTqV...
* Website: https://www.edspira.com/podcast-2/
—
GET TAX TIPS ON TIKTOK
* TikTok: prof_mclaughlin
—
ACCESS INDEX OF VIDEOS
* https://www.edspira.com/index
—
CONNECT WITH EDSPIRA
* Facebook: Facebook: Edspira
* Instagram: Instagram: edspiradotcom
* LinkedIn: LinkedIn: edspira
—
CONNECT WITH MICHAEL
* Twitter: Twitter: Prof_McLaughlin
* LinkedIn: LinkedIn: prof-michael-mclaughlin
—
ABOUT EDSPIRA AND ITS CREATOR
* https://www.edspira.com/about/
* https://michaelmclaughlin.com

• #education
• #cost_of_goods_sold
• #cost_of_sales
• #cogs
• #financial_accounting
• #accounting
• #journal_entry
• #journal_entries