On June 1, Electronics Distribution Ships 100 TVs to TV

question 16

Multiple Choice

On June 1, Electronics Distribution ships 100 TVs to TV World on consignment. The cost of each unit is $600 and the unit selling price is $750. At the end of June, TV World sold 50 units. How much cost of sales should be recorded by Electronics Distribution for the month of June?

• A)$37,500
• B)$30,000
• C)$60,000
• D)$75,000

---

Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, reflecting its nature in the double-entry accounting system.

Financial Statement

A written record that conveys the business activities and the financial performance of a company.

Permanent/Temporary

Refers to the classification of accounts based on their longevity; permanent accounts are not closed at the end of the accounting period, while temporary accounts are.

Net Sales

Total sales revenue less returns, allowances, and discounts.