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) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts receivable } & 400 & \\
• \hline \text { Sales revenue } & & 400 \\
• \hline
• \end{array}\]

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Definitions:

Elaboration Likelihood Model

Theory identifying two ways to persuade: a central route and a peripheral route.

Persuade

The act of convincing someone to do or believe something through reasoning or argument.

Social Stimuli

External events or circumstances that can elicit or influence social behavior and responses.

Central Route

A method of persuasion that involves carefully constructing and presenting a logical argument.