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Steve Smith, owner of Steve's Bowling Alley,

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Answer #2 because #1 is only for reference.

Here is a practice problem: #2

Steve Smith, owner of Steve's Bowling Alley, generated $30,000 in sales for the month of January. "Regular" customers are allowed to play on account. $22,000 of January sales were collected in cash, and $8,000 was applied on account. What would be the journal entry to record January sales?

Referring to Practice Problem #1, and assuming Steve had no other expenses, what is Steve's net income for January?

Practice Problem #1
Steve Smith, the owner of Steve's bowling alley, purchased $10,000 of bowling shoes on 1/31/07. He paid $5,000 in cash, and applied the rest on account. What would be the journal entry to record this transaction? In other words, which accounts should be debited and credited?

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This solution is comprised of a detailed explanation to answer what would be the journal entry to record January sales.

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