When Merchandise Is Sold and the Perpetual System of Inventory

question 21

Multiple Choice

When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include

• A) debiting Accounts Receivable and crediting Sales.
• B) debiting Accounts Receivable and crediting Merchandise Inventory.
• C) debiting Accounts Receivable and crediting Cost of Goods Sold.
• D) debiting Cost of Goods Sold and crediting Sales.

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Definitions:

Ethnomethodology

A sociological perspective focused on the ways people use everyday conversation and gestures to construct a shared social reality.

Phenomenology

A philosophical approach that focuses on the structures of experience and consciousness from the first-person perspective.

Talcott Parsons

A prominent American sociologist known for his theories on social systems, action theory, and for his role in developing structural functionalism.

European Tradition

Relates to the social, cultural, historical, and intellectual heritage of Europe.