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

question 123

Multiple Choice

A company that uses the perpetual inventory system sold $1,000 of goods to a customer on account.Which of the following journal entries correctly records the Sales revenue?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of goods sold } & 1,000 & \\
• \hline \text { Sales revenue } & & 1,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Inventory } & 1,000 & \\
• \hline \text { Cost of goods sold } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts receivable } & 1,000 & \\
• \hline \text { Cash } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts receivable } & 1,000 & \\
• \hline \text { Sales revenue } & & 1,000 \\
• \hline
• \end{array}\]

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Definitions:

Acquire

To gain possession or ownership of an item, skill, or knowledge through purchase, effort, or experience.

Take-Over

The act of gaining control or ownership of something, such as a company or territory, often through financial acquisition or force.

Distributive Justice

A principle concerned with the fair and equitable distribution of benefits and resources among individuals in a society.

Primates

A group of mammals that includes humans, apes, monkeys, and others, characterized by relatively large brains, forward-facing eyes, and complex social behaviors.