Part of the Journal Entry to Record the Cost of an Item

question 48

Multiple Choice

Part of the journal entry to record the cost of an item for $28 that sold for $40 cash under the perpetual inventory system is:

• A)debit Sales,$40;credit Cost of Goods Sold,$28;credit Cash,$12.
• B)debit Cost of Goods Sold,$40;sales,$40.
• C)debit Cash,$40;credit Inventory $40.
• D)debit Cost of Goods Sold $28;credit Inventory,$28.

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Definitions:

Hangover

Physical and mental discomfort symptoms experienced after consuming excess alcohol, usually including headache, nausea, and fatigue.

REM Sleep

A stage of sleep characterized by rapid eye movements, more dreaming and bodily movement, and faster pulse and breathing.

Alcohol

A colorless volatile flammable liquid that is the intoxicating constituent of wine, beer, spirits, and other drinks, and also used as an industrial solvent and as fuel.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, 5th Edition, a classification and diagnostic tool used by mental health professionals.