Under the Perpetual System, When Merchandise Is Sold, the Journal

question 10

Multiple Choice

Under the perpetual system, when merchandise is sold, the journal entry would include a:

• A) debit to Merchandise Inventory; a credit to Accounts Payable or Cash.
• B) debit to Cost of Goods Sold; a credit to Merchandise Inventory.
• C) debit to Accounts Receivable or Cash and a credit to Sales.
• D) Both B and C are correct.

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Definitions:

Circumflex Artery

A coronary artery that encircles the heart muscle, supplying blood and oxygen to the left atrium and the side and back of the left ventricle.

Bicuspid Valve

Another term for the mitral valve, located between the left atrium and left ventricle of the heart; it has two flaps (cusps).

Aortic Semilunar Valve

A valve in the heart between the left ventricle and the aorta that prevents blood from flowing back into the ventricle.

Pulmonary Trunk

A major blood vessel that exits the right ventricle of the heart, dividing into the left and right pulmonary arteries to carry deoxygenated blood to the lungs.