A company sold merchandise with a cost of $231 for $480 on account. The seller uses the perpetual inventory system. The entry to record the cost of merchandise sold would include ________
A) a debit to Sales Revenue and a credit to Cash for $480
B) a debit to Cash and a credit to Sales Revenue for $480
C) a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $231
D) a debit to Merchandise Inventory for $231 and a credit to Cost of Goods Sold for $231
C
You might also like to view...
The ________ states that if there are k1 choices for the first event, choices for the second event, . . ., and choices for the nth event, then the total number of possible outcomes are
A) law of large numbers B) fundamental counting principle C) addition rule D) empirical rule
Which of the following is a performance standard under the International Standards for the Professional Practice of Internal Auditing?
A) proficiency and due professional care B) independence and objectivity C) requirement that the internal audit must be a CPA D) engagement planning