Here Is Some Basic Data for Shannon Company: the Journal

question 187

Multiple Choice

Here is some basic data for Shannon Company: The journal entry to record the cost of raw materials placed into production involves a

• A)debit to overhead for $51,000.
• B)debit to work in process inventory for $53,000.
• C)debit to work in process inventory for $51,000.
• D)credit to manufacturing overhead for $2,000.

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Definitions:

Credit Sales

Sales where the customer is allowed to make payment at a later date, extending credit to the buyer.

Cash Received

The physical or electronic receipt of money from transactions, such as sales, debt collections, or asset disposals.

Total Sales

The total revenue generated from the sale of goods or services before any deductions, such as returns or discounts.

Credit Sales

Sales made by a business that do not require immediate payment, allowing the buyer to pay at a later date.