A Company That Uses the Perpetual Inventory System Sold Goods

question 113

Short Answer

A company that uses the perpetual inventory system sold goods to a customer for cash for $3,000. The cost of the goods sold was $600. Which of the following journal entries correctly records this transaction?

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Definitions:

Rib Cage

The bony structure surrounding the chest cavity that protects the heart and lungs, consisting of ribs, sternum, and part of the vertebral column.

Costal Cartilages

Costal cartilages are bars of hyaline cartilage that serve to prolong the ribs anteriorly and contribute to the elasticity of the thoracic cage.

Sternum

Breastbone.

Olecranon Process

Process on the distal end of the ulna, forming the point of the elbow.