Under a Perpetual Inventory System, the Entry to Record a Sale

question 149

Multiple Choice

Under a perpetual inventory system, the entry to record a sale on account would include a debit to:

• A)Accounts Receivable and a credit to Sales Revenue for the retail price of the inventory.
• B)Inventory and a credit to Sales Revenue for the retail price of the inventory.
• C)Cost of Goods Sold and a credit to Inventory for the retail price of the inventory.
• D)Accounts Receivable and a credit to Sales Revenue for the cost of the inventory.

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Definitions:

Instinct

An innate, typically fixed pattern of behavior in animals in response to certain stimuli.

Defense Mechanism

Psychological strategies brought into play by individuals, unconsciously, to protect themselves from anxiety or to provide a refuge from a situation with which they cannot currently cope.

Moral Basis

The foundational principles or beliefs that guide judgments about what is right or wrong, ethical or unethical.

Repression

A psychological defense mechanism where distressing thoughts, memories, or urges are unconsciously pushed out of the conscious mind.