 In this presentation, we will record the sale of our finished goods of our finished jobs. We're going to enter the information into our general journal, post that to the general ledger, use the general ledger to create the trial balance, the trial balance in order assets, liabilities, equity, income and expenses. We are in balance debits equaling the credits, debits minus the credits equaling zero. We currently have net income just a loss of this time of the 380 in the cost of goods sold. So our goal this time is going to be to record the sale. So we finally have gone through this full process. We have the raw materials that we used to create the work in process and then added the direct labor and the overhead to it as well. We then finished that moved it to the finished goods. And now we're going to sell a couple of jobs. Finally, the jobs are done. Again, if they're custom guitars or if they're custom something, then we're selling the products at the end of their construction projects, then we're completing the construction projects at this time and we're recording the sale related to that. So we're going to say that the jobs that are completed and sold are 15 and 16. So let's go to our job cost sheet over here. We're going to go to the right and look at these two that have been sold. So these are all the jobs that we have. They all consist of direct materials, labor and overhead. And we're saying now that these three, the blue ones, have been completed. They're done. The green ones are not completed. The blue ones support what is in finished goods, meaning these accounts add up to this number here. And that's going to be supported. That's going to be what's on the trial balance. So in other words, this trial balance account in finished goods is supported not only by the finished goods, GL, but by the jobs that have been completed. And then this number here are all the ones that are uncompleted, these two, and that is also supported on the trial balance by this number. So in other words, this working process is supported by the working process GL and the jobs. What we're saying now is that some of these have been sold. And these are the three kind of forms that we can have on a job. They can either be open, we're working process, they can be closed, finished goods, or they could be sold, I'm going to say they're shipped, they're gone. And that means that they should have gone through cost of goods sold. And we can't really track them like a balance sheet account, the income statement accounts roll roll in the retained earnings, they're temporary. So we're saying this time that two of these jobs are finished, these two have been finished. So I'm going to make this account then yellow. So what I'm going to do is unblue this one by highlighting these two, I want to format paint this. So I'm going to highlight these, go to the paintbrush home tab format painter, and then paintbrush that. And then I'm going to make this one yellow. I'm going to make a shifting, I'm going to make it yellow. So right click and make it yellow. So the yellows are going to be the shipped one. And of course it's on the shipped column. And then I'm going to do the same thing down here. So I'm going to highlight this whole thing, home tab format paint and highlight this whole thing. So now this one has been shipped. So we're saying that these two then are the ones that are being sold job 15 and 16. Here's the total for them. So I'm going to say this one holding down control and this one add up to 6,610. So from a journal entry standpoint, we need to take 6,610 out of finished goods and record it into cost of goods sold. So so that's what we're going to do. Now I'm going to scroll all the way back to the left. Now when we think of this, the sales journal entry, after doing all this stuff of tracking the cost, we kind of forget what the sales journal entry is after a while because we haven't really thought about the sales for a while. So we've been tracking the cost. So this whole thing deals with the cost and the sales journal entry remember has two parts, whether it be merchandising sales or for a manufacturing company. One is we have the sales half. So the sales half would mean that we made a sale. We did what we did. We did, if we were service company, we did work for an in for a merchandising company, we delivered the goods. And for a merchandising company, if we make goods, we deliver the goods as well. It's finally done. If it's a construction company, we completed the job. So what we're going to do here is record the sale. And the sale means typically we either got paid or we got an IOU. They're going to owe us money. We're going to bill the client. So I'm going to right click on accounts receivable and say that that's going up. We're going to say right click and copy, put that up top in F 10, right click and paste 123. Now, the problem is based on our information, we don't know what the sales price is. And that's the problem with these kind of problems. Because we're only dealing with a cost. So we'll get back to the sales price, but I just want to post this first half that's normally posted first of the journal entry, as we then think about what we're working on, which is the second half of the sales journal entry. So then the other side of that would be sales or revenue. Revenue has a credit balance. It only goes up in the credit direction. We're going to increase it with a credit. So J 18, I'm going to right click and copy. And we'll put that in F 11, right click and paste 123. So that's the debit and credit related to the sales. Again, I don't know what the sales price is unless they give it to us. And they did hear they're going to say the sales price is a 30% markup. So again, let's wait on that. And let's do the thing that we know first, we know that we're sold what we sold inventory. So at this point, this is the same as like a merchandising company, we've got the inventory that's finished, we're going to sell it. That means it's going to go down because we're now at their guitars, we gave the guitars away and it's going down. So this is a debit balance, we're going to do the opposite thing to it a credit. So I'm going to right click and copy going to make a new journal entry, skip a line, skip another line and then F 14, right click and paste 123. And then the debit then is going to go to the cost of goods sold. So that's an expense account. It's going to go up in the debit direction, going to right click and copy that and put this in F 13, right click and paste 123. So without the numbers here, this should still kind of look familiar. This is our, whenever we sell inventory on a perpetual system, this is what we have. We have the sales half, receivables and sales, sales go up and people owe us money if we invoice them. And then inventory goes down and this tastes finished goods inventory and cost of goods sold is the expense, which is going to go up. So now the inventory is going to go down and the expense is going to go up. I'm going to calculate it here. We already looked at it. It's these two jobs, these two completed jobs. So within G 13, I'm going to say equals. I'm going to scroll all the way to the jobs and see if we can recalculate this again. It's going to be these two shipped jobs, this one plus this one, but that's going to be the journal entry. So the finished amount of these two jobs and enter. So we already calculated it was 6,610. If I double click on it, let's do it again. It's equal to AI 12 plus AI 21. And then the credit is going to decrease finished goods inventory negative of this number. So we just looked kind of at the inventory that the cost of goods sold, of course, will be the same. So now we want to think about, well, what is the sales price then? Well, one way that sometimes we think about the sales price, and again, it doesn't have to be this way that the two aren't tied necessarily together, but we can think of different ways the sales price might be derived from the cost. So it's a third, we're going to say there's a 30 percent markup. So if I go all the way back over here, if we thought about this as kind of like a construction process or something like that, or a guitar or anything that we make, if it's custom, when they weigh, we might bill our clients one way we might construct the invoice to say, Hey, look, I'm going to, I'm going to tell you exactly what the cost is. And I'm going to mark it up by something in our case, 30 percent. So we're going to say, look, the materials cost this, the direct labor cost this in the overhead, I tried to allocate as much as well as I can cost that the total cost is 3,820. That's the cost. And we're going to have a 30 percent markup. That's my revenue on it. And so that could be calculated as 3,820 times point.