Mitchell Uses a Perpetual Inventory System

question 73

Multiple Choice

Mitchell uses a perpetual inventory system.Mitchell sells a computer from inventory for $1,198 on credit.Mitchell originally bought the computer from IBM for $790.What journal entry (entries) will Mitchell prepare to record the sale?

• A)Debit Cash and credit Sales Revenue for $1,198;debit Cost of Goods Sold and credit Inventory for $790.
• B)Debit Accounts Receivable for $1,198,credit Inventory for $790,and credit Gross Profit for $408.
• C)Debit Accounts Receivable and credit Sales Revenue for $1,198;debit Cost of Goods Sold and credit Inventory for $790.
• D)Debit Inventory for $790,debit Cost of Goods Sold for $408,and credit Accounts Receivable for $1,198.

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Definitions:

Fixed Interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

Reinforcement

In behavior psychology, a stimulus or event that follows a behavior and increases the likelihood of that behavior occurring again.

Response

A reaction to a specific stimulus or situation, often studied in psychology to understand behavior.

Variable Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed.