During March,Zea Inc

question 168

Multiple Choice

During March,Zea Inc.transferred $50,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $56,000.The journal entries to record these transactions would include a:

• A) credit to Cost of Goods Sold of $56,000
• B) debit to Finished Goods of $56,000
• C) credit to Work in Process of $50,000
• D) credit to Finished Goods of $50,000

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Definitions:

Consideration

A concept in contract law that refers to something of value that is exchanged between parties to a contract, making the agreement legally binding.

Charitable Pledge

A commitment to donate a specific sum of money to a charitable organization, often payable over a certain period.

Past Consideration

A term used in contract law that refers to an act or benefit given in the past, which cannot be used as consideration for a current contract.

Promissory Estoppel

A legal principle that prevents a promisor from withdrawing a promise that a promisee has relied upon.