Journal entries to record sales and cost of sales
On 3/17, Janet's Spa sold two of the plush robes from her inventory to one of her customers, Tom Cruise. Janet charged Mr. Cruise $1,750 for the robes ($875 apiece). Janet always pays any shipping charges, and she paid her shipper $140. Mr. Cruise has an account with Janet, and she offers terms of n/30 to her customers. The inventory value of the two robes was $178 apiece.
1. Prepare the sales portion of the entry for this sale on Janet's books.
2. Prepare the cost of sales portion of the entry for this sale on Janet's books