A Company That Uses the Perpetual Inventory System Sold $1,000 $$\begin{array} { | l | r | r | } \hline \text { Cost of goods sold } & 400 & \\\hline \text { Sales revenue } & & 400 \\\hline\end{array}$$

question 57

Multiple Choice

A company that uses the perpetual inventory system sold $1,000 of goods to a customer on account.The inventory had been purchased by the company for $400.Which of the following journal entries correctly records the Cost of goods sold?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of goods sold } & 400 & \\
• \hline \text { Sales revenue } & & 400 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Inventory } & 400 & \\
• \hline \text { Cost of goods sold } & & 400 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of goods sold } & 400 & \\
• \hline \text { Inventory } & & 400 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts receivable } & 400 & \\
• \hline \text { Sales revenue } & & 400 \\
• \hline
• \end{array}\]

---

Definitions:

Basic Anxiety

A term introduced by psychoanalyst Karen Horney, referring to feelings of helplessness and insecurity that arise from living in a potentially hostile world, which can significantly affect one's relationships and self-image.

Drive for Perfection

A motivating force that compels individuals to strive for flawlessness and set excessively high performance standards.

Personality Type

Distinct patterns of thought, feeling, and behavior that characterize an individual’s adjustments to the world; often categorized into specific types or categories.

Detached

Emotional or physical disengagement or separation from others, often as a defense mechanism or coping strategy.