Question

Journal entry example for Unique Robots Company inventory and revenue calculations.

Accepted Answer

Alright. Let's try this practice. Unique robots company currently has 4 robots in its factory. 2 units of X3za which it purchased for 80,000 each, one unit of e e one c for 60,000 and one unit of c four p o for a 125,000. The company then sold the EE one c model for a 140,000. Right? Journalize this sale and note the ending balance in the following accounts. So we see that they sold EE one C for a 140,000 and we know what EE one C cost us as well. Right? 60,000 over here. So this is specific identification. Right? We can identify exactly what we sold so we can take that and make the cost of goods sold directly with that number. Alright. So let's check it out. 1st, let's do our revenue entry. Right. We sold EE one C model for a $140,000 We'll assume we did that in cash and we received cash of a $140,000 there. Now it wouldn't totally be wrong if you assumed that, we weren't paid in cash and we got an accounts receivable. Well, we could have debited accounts receivable just the same. So cash a 140,000 and then credit revenue. Right? We sold this for a 140,000. We earned a 140,000 in revenue. So there is our revenue entry and then we also have to make an entry for a cost of goods sold. So we would debit cost of goods sold for 60,000, right? That is what this unit cost us. So that is going to be the expense cost of goods sold and we're gonna credit inventory, right? We need to get it out of inventory because we don't own it anymore. We sold it to a customer. So we're gonna credit our inventory to decrease that balance. So what's left in inventory after that? Tells us we had 2 units. So there's a little trick. 2 units of X3CA, that it purchased for 80,000 each. So that's gonna be 2 times 80,000 plus What else do we have left? We sold the EE 1C and we have 1 unit of C4PO for a 125,000. Right. So, 2 times 80,000 is a 160,000. So this will be 285,000 left in inventory. Right. Our revenue was the 140,000 that we sold it to the customer at that price and cost of goods sold of 60,000 is what we paid for the unit. Alright. So there we go. That specific identification right there. Let's go ahead and move on to the next video.

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