How would you journalize the January 31st entry for cost of goods sold?
January 5th Completed the purchase of an exquisite selection of tea leaves and mixtures for $2,000. 50% was paid in cash, the other 50% will be paid in 30 days.
January 31st Having consumed 75% of the tea at hand she purchases on account more tea for $1,000.
Credit Cost of goods $1500 ??
Debit Inventory $1000
Credit Accounts Payable $1000