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:

Island Arc

A curved chain of volcanic islands located at a tectonic plate margin, typically formed above a subducting plate.

Mid-Ocean Ridge

An underwater mountain range, formed by plate tectonics, featuring peaks separated by valleys with a central rift valley that forms at divergent plate boundaries.

Subduction

A geologic process where one tectonic plate moves under another, sinking into the earth's mantle.

Caldera

A vast crater on a volcano, often resulting from a major eruption and subsequent collapse of the volcano's opening.