Mack Industries Uses the Perpetual Inventory System

question 12

Multiple Choice

Mack Industries uses the perpetual inventory system. What is the entry to record a $300 sale on account to customer Jake Sanders, with a $100 cost of sale?

• A) Debit Accounts Receivable for $300; credit Sales for $300; debit Cost of Goods Sold for $100; credit Merchandise Inventory for $100.
• B) Debit Accounts Receivable for $300; credit Sales for $100; debit Cost of Goods Sold for $300; credit Merchandise Inventory for $100.
• C) Debit Accounts Receivable for $300; credit Sales for $300.
• D) Debit Sales for $300; credit Accounts Receivable for $300.

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Definitions:

Biologically-Oriented

A perspective or approach that focuses on the biological or genetic factors in the study of organisms or behaviors.

Development

The process of growth or progression through a series of progressive changes, typically from a simpler to a more complex or better state.

Mesosystem

The interlocking settings that influence the child, such as the interaction of the school and the larger community when children are taken on field trips.

Bronfenbrenner

Refers to Urie Bronfenbrenner's ecological systems theory which describes the nested environmental contexts in which a person develops.