Sharpington,Inc B) C) D) E)

question 109

Multiple Choice

Sharpington,Inc.manufactures and sells phone cases.The company sold a shipment of cases costing $5,000 to a customer for $8,000.The customer paid cash.Which of the following is the journal entry that Sharpington would make to record the sale of the shipment of cases?

• A)\(\begin{array}{lll}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Cash } & 8,000 & \\
• \text { Sales } & &3,000 \\
• \quad \text { Merchandise Inventory } & & 5,000\\
• \end{array}\)
• B) \(\begin{array}{lll}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text { Merchandise Inventory } & 5,000\\
• \text { Sales } & 3,000 \\
• \text {Cash } & &8,000 & \\
• \end{array}\)
• C)\(\begin{array}{lccc}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Cash } & 8,000 & \\
• \text { Net Income } & &3,000 \\
• \quad \text { Merchandise Inventory } & & 5,000\\
• \end{array}\)
• D)\(\begin{array}{lccc}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text { Cash } & 8,000\\
• \text {Cost of Goods Sold } & 5,000 \\
• \text { Sales } & &8,000 & \\
• \text { Merchandise Inventory } && 5,000\\
• \end{array}\)
• E)\(\begin{array}{lccc}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Sales } & 8,000\\
• \text {Merchandise Inventory } & 5,000 \\
• \text { Cash } & &8,000 & \\
• \text { Cost of Goods Sold } && 5,000\\
• \end{array}\)

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Definitions:

Female Companionship

The relationship or association between women, often implying friendship, support, or partnership.

American System Of Manufactures

A system of production that relied on the mass production of interchangeable parts that could be rapidly assembled into standardized finished products. First perfected in Connecticut by clockmaker Eli Terry and by small-arms producer Eli Whitney in the 1840s and 1850s.

Interchangeable Parts

A manufacturing system where components are made to such precise standards that they can be swapped with similar parts in other assemblies without custom fitting.

Eli Terry

An American clockmaker from the early 19th century, known for his role in developing mass production techniques in clockmaking, significantly impacting the industry.