Dombrose Company Uses a Perpetual Inventory System

question 117

Multiple Choice

Dombrose Company uses a perpetual inventory system. On January 1, inventory is $253,000. On April 5, Dombrose sells inventory with a selling price of $75,000 on account. The cost of the inventory sold is $50,000. The journal entry (entries) to record the sale is (are) ________.

• A) debit Cash and Cost of Goods Sold and credit Sales Revenue and Inventory
• B) debit Accounts Receivable and credit Sales Revenue; debit Cost of Goods Sold and credit Inventory
• C) debit Accounts Receivable and credit Sales Revenue
• D) debit Cash and credit Sales Revenue

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Definitions:

Potassium Ions

Positively charged ions (K+) essential for various cellular processes, including nerve transmission, muscle contraction, and maintaining fluid balance within cells.

Ammonium Ions

Positively charged ions (NH4+) derived from ammonia, significant in the nitrogen cycle and plant nutrition.

Secretion

The method through which materials are generated and released from a cell, gland, or organ, serving a specific role within the organism or for the purpose of elimination.

Vasa Recta

A series of straight capillaries in the kidney that serve as a counter-current exchange mechanism, concentrating urine and conserving water.