A Computer Manufacturer Recently Shipped Several Laptops to a Customer

question 6

Multiple Choice

A computer manufacturer recently shipped several laptops to a customer (cost: $25,000) and billed the customer $30,000.Which of the following options correctly expresses the accounts that are debited and credited to record this transaction?

• A)Debits: Accounts Receivable,Finished-Goods Inventory;credits: Sales Revenue,Cost of Goods Sold.
• B)Debits: Accounts Receivable,Cost of Goods Sold;credits: Sales Revenue,Finished-Goods Inventory.
• C)Debits: Sales Revenue,Cost of Goods Sold;credits: Accounts Receivable,Finished-Goods Inventory.
• D)Debits: Sales Revenue,Finished-Goods Inventory;credits: Accounts Receivable,Cost of Goods SolD.
• E)Debits: Accounts Receivable;credits: Finished-Goods Inventory,Profit on SalE.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent or salaries.

Specialist Medical Equipment

High-tech and advanced medical tools and devices specifically designed for certain branches of medicine to diagnose or treat diseases effectively.

Labour Hours

The total number of hours worked by employees during a specific period, usually considered for costing or productivity analysis.

Operations Management

The area of management concerned with designing, overseeing, and controlling the process of production and redesigning business operations in the production of goods or services.