In a Periodic Inventory System,the Journal Entry to Record the Sale

question 20

Multiple Choice

In a periodic inventory system,the journal entry to record the sale of merchandise on account would include a:

• A)debit to Cost of Goods Sold
• B)credit to Accounts Payable
• C)debit to Inventory
• D)no entry involving Inventory or Cost of Goods Sold

---

Definitions:

Consumer Surplus

The discrepancy between the sum consumers are ready and capable of paying for a service or product and the sum they actually spend.

Producer Surplus

The discrepancy between what producers anticipate accepting for a good or service and what they end up being paid.

Imported Units

Refer to products or goods brought into a country from another for sale or use.

Total Surplus

The combined total of consumer and producer surplus, signifying the overall net advantage to society derived from a market transaction.