Journal entries: Selling goods and services

Cash and credit sales of goods and services, customer returns, cash discounts, deposits received before a service, bad debts and rent income.

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The entries

1. Cash sale of merchandise (periodic inventory)
2. Sale on account with a trade discount
3. Cash sale with cost of goods sold (perpetual inventory)Not in: Spain (PGC 2007), France (PCG 2025)
4. Sale on account with cost of goods soldNot in: Spain (PGC 2007), France (PCG 2025)
5. Customer returns merchandise bought on account (periodic inventory)
6. Customer returns goods for a cash refund, restocked (perpetual inventory)Not in: Spain (PGC 2007), France (PCG 2025)
7. Collecting a customer’s invoice in full, in cash
8. Customer pays within the discount period
9. Selling merchandise on account with sales tax
10. Cash sales with sales tax included in the total
11. Invoicing a client for services rendered
12. Service paid for on completion
13. Receiving a customer deposit before the service
14. Delivering a service the customer paid in advance
15. Sale paid partly in cash, partly on account
16. Writing off a bad debt: direct write-off method
17. Writing off an account under the allowance method
18. Estimating bad debts as a percentage of sales
19. Recovering an account previously written off
20. Receiving rent for a van rented out

Other topics

• Starting the business
• Buying goods and supplies
• Fixed assets
• Expenses and payroll
• Adjusting, closing and correcting
• Cash and bank
• Notes and loans
• Inventory and cost of goods
• Corporations and equity
• Multi-step scenarios