Can you let me know what the general entry will be at the time of selling goods?
💡 Model Answer
When goods are sold, the typical journal entry records the revenue and the cost of goods sold. The entry is:
Debit Accounts Receivable (or Cash) – the amount received from the customer.
Credit Sales Revenue – the selling price of the goods.
Debit Cost of Goods Sold – the expense associated with producing or purchasing the goods.
Credit Inventory – the inventory value that has been sold.
This entry reflects the inflow of cash or receivables, recognizes revenue, and removes the sold inventory from the balance sheet while matching the cost to the revenue.
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