A Company That Uses the Perpetual Inventory System Sold Goods $$\begin{array} { | c | l | l | } \hline \text { Accounts receivable } & 500 & \\\hline \text { Sales revenue } & & 500 \\\hline\end{array}$$

question 55

Multiple Choice

A company that uses the perpetual inventory system sold goods for $3700 to a customer on account.The company had purchased the inventory for $500.Which of the following journal entries correctly records the cost of sales?

• A) \[\begin{array} { | c | l | l | }
• \hline \text { Accounts receivable } & 500 & \\
• \hline \text { Sales revenue } & & 500 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | l | l | }
• \hline \text { Cost of sales } & 500 & \\
• \hline \text { Inventory } & & 500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | l | l | }
• \hline \text { Inventory } & 500 & \\
• \hline \text { Cost of sales } & & 500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | l | l | }
• \hline \text { Cost of sales } & 500 & \\
• \hline \text { Sales revenue } & & 500 \\
• \hline
• \end{array}\]

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Definitions:

Cleavage

The tendency of a mineral to break along flat, smooth surfaces, which is related to the mineral’s crystal structure.

Silicate Minerals

Minerals that contain silicon and oxygen, and usually one or more additional elements, making up the largest and most important class of rock-forming minerals.

Silicon

A chemical element with the symbol Si and atomic number 14, known for its semiconductor properties and widely used in electronics and computer chips.

Oxygen Atoms

the basic unit of the element oxygen, essential for combustion, respiration, and various other chemical reactions.