Mars Hardware Sold 20 Drills for $8 Each $\begin{array}{lrr} \text { Cash } &160\\ \text {Sales } &&160\\\end{array}$

question 78

Short Answer

Mars Hardware sold 20 drills for $8 each. Each drill cost $4. Which journal entry completely records the sale under a perpetual inventory system?
a.
$\begin{array}{lrr} \text { Cash } &160\\ \text {Sales } &&160\\\end{array}$

b.
$\begin{array}{lrr} \text { Cash} &160,\\ \text { Inventory} &&160\\\end{array}$

c.
$\begin{array}{lrr} \text { Cash } &160\\ \text { Cost of Goods Sold} &80\\ \text {Sales } &&160\\ \text { Inventory } &&80\\\end{array}$

d.
$\begin{array}{lrr} \text { Cash } &160\\ \text {Inventory } &&80\\\text {Gain from Sale}&&80\\\end{array}$

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.

Deficits

Financial situations that occur when a government's expenditures surpass its revenues within a specified period, leading to borrowing or debt accumulation.

Tax Plan

A government's proposal or strategy regarding how to collect and manage taxes, including changes in tax rates, tax credits, and deductions.

Income Taxes

Taxes levied by the government directly on personal, or corporate income.