BetterBuy Sells a Computer from Inventory for $599 on Credit

question 63

Multiple Choice

BetterBuy sells a computer from inventory for $599 on credit.BetterBuy originally bought the computer from IBM for $395 and uses the perpetual inventory system.How is the sale recorded in BetterBuy's journal entries?

• A)Debit Cash for $599,credit Sales for $599;debit Cost of goods sold for $395 and credit Inventory for $395.
• B)Debit Accounts Receivable for $599,credit Inventory for $395,and credit gross profit for $204.
• C)Debit Accounts Receivable for $599,credit Sales for $599;debit Cost of Goods Sold for $395 and credit Inventory for $395.
• D)Debit Inventory for $395,debit Cost of Goods Sold for $204,and credit Accounts Receivable for $599.

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Definitions:

Archaea

A domain of single-celled microorganisms that are genetically distinct from bacteria and eukaryotes, often inhabiting extreme environments.

Eukarya

A domain of life consisting of organisms with cells that contain a nucleus, including animals, plants, fungi, and protists.

Consumers

Organisms that obtain energy by consuming other organisms or organic matter, as opposed to producing their own energy through photosynthesis or chemosynthesis.

Decomposed

The process by which organic substances are broken down into simpler organic or inorganic matter, primarily by the actions of microorganisms.