BetterBuy Uses a Perpetual Inventory System

question 207

Multiple Choice

BetterBuy uses a perpetual inventory system.BetterBuy sells a computer from inventory for $599 on credit.BetterBuy originally bought the computer from IBM for $395.What journal entry (entries) will BetterBuy prepare to record the sale?

• A) Debit Cash and credit Sales Revenue for $599; debit Cost of Goods Sold and credit Inventory for $395
• B) Debit Accounts Receivable for $599, credit Inventory for $395, and credit Gross Profit for $204
• C) Debit Accounts Receivable and credit Sales Revenue for $599; debit Cost of Goods Sold and credit Inventory for $395
• D) Debit Inventory for $395, debit Cost of Goods Sold for $204, and credit Accounts Receivable for $599

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Definitions:

Class Analysis

The study of society focused on understanding the dynamics of social class and the complexities of socio-economic stratification.

Participant Observation

A method whereby the sociologist becomes both a participant in the group being studied and a scientific observer of the group.

Anti-Semitism

The belief or behavior that defines Jewish people as inferior and that targets them for stereotyping, mistreatment, and acts of hatred.

Political Opponents

Individuals or groups who oppose each other in political contexts, often with differing ideologies or objectives.