Double Entry Practice Questions
COGS, Sales, Sales Returns, Equity, Expenses
1. A business sells goods worth $5,000 on credit. Record the double entry.
2. The company purchases inventory worth $3,000 on credit. Record the double entry.
3. Goods costing $1,200 are sold for $2,000 cash. Record the double entry for both the sale
and the cost of goods sold.
4. A customer returns goods previously sold on credit worth $700. Record the double entry.
5. The business pays $500 in rent expense by cheque. Record the double entry.
6. The owner invests $10,000 cash into the business as capital. Record the double entry.
7. Inventory costing $800 is written off as obsolete. Record the double entry.
8. The business receives $1,500 cash from a customer for goods sold. Record the double
entry.
9. The company issues shares worth $20,000. Record the double entry.
10. Sales returns of $400 are received from a customer who originally bought on credit. Record
the double entry.
11. The business pays $300 for advertising expense in cash. Record the double entry.
12. Inventory costing $2,500 is sold for $4,000 on credit. Record the double entry for both sale
and COGS.
13. The business incurs $1,000 in utilities expense, paid in cash. Record the double entry.
14. The owner withdraws $2,000 cash for personal use. Record the double entry.
15. The company writes off $600 as bad debts expense. Record the double entry.