A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $7,000 and paid $800 for the freight-in. The company sold the whole lot to a supermarket chain for $14,000 on account
Which of the following entries correctly records the sale?
A)
Accounts Receivable 14,000
Sales Revenue 14,000
Cost of Goods Sold 7,800
Merchandise Inventory 7,800
B)
Merchandise Inventory 14,000
Cost of Goods Sold 14,000
C)
Cost of Goods Sold 14,000
Sales Revenue 14,000
D)
Accounts Receivable 14,000
Sales Revenue 14,000
Cost of Goods Sold 7,000
Merchandise Inventory 7,000
A
You might also like to view...
What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?
A) segmented pricing B) psychological pricing C) geographical pricing D) promotional pricing E) dynamic pricing
Which of the following best explains why many businesses use employee leasing firms?
A) Firms save money by hiring part-time or temporary workers. B) Investment opportunities are more plentiful and reliable. C) Small companies are able to get better insurance rates. D) Franchise owners can offer more flexible schedules.