Answer :
Final Answer:
The journal entry to record the sale by Myers would include a debit to Accounts Receivable for $800, a debit to Cash for $400, and a credit to Sales Revenue for $1,200.
Explanation:
In this transaction, Myers Appliances sold a washer-dryer for $1,200 with terms that include a $400 down payment and the balance due in 60 days. To record this sale in their accounting books, Myers would make the following journal entry:
Debit Accounts Receivable: This accounts for the portion of the sale that is on credit, i.e., the $800 balance to be paid in 60 days. Debiting this account increases the amount owed to Myers.
Debit Cash: The $400 down payment received immediately is debited to the Cash account to reflect the increase in cash on hand.
Credit Sales Revenue: This credit entry represents the total sale amount of $1,200. By crediting this account, Myers recognizes the revenue from the sale.
So, this journal entry reflects the dual-entry accounting system, ensuring that the books are balanced. It recognizes the income that Myers has earned from the sale ($1,200) and the amount still to be collected ($800) from the customer within the agreed-upon timeframe.
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