Faust Company Uses the Perpetual Inventory Method

question 110

Multiple Choice

Faust Company uses the perpetual inventory method.Faust sold goods that cost $2,300 for $3,600.If the sale was made on account,the net effect of the sale will:

• A)increase total assets by $2,300.
• B)increase total equity by $3,600.
• C)increase total assets by $1,300.
• D)increase total assets by $3,600.

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