When an Inventory Item That Cost $75 Is Sold on Account

question 39

Multiple Choice

When an inventory item that cost $75 is sold on account for $100, which of the following would be included in the journal entry recording the cost of goods sold?

• A)Dr.Cash $100
• B)Cr.Cost of goods sold $75
• C)Cr.Accounts Receivable $100
• D)Cr.Inventory $75