A Company Purchased Inventory for $800 Per Unit

question 94

Multiple Choice

A company purchased inventory for $800 per unit. The inventory was marked up to sell for $1,000 per unit. The entries to record the sale for cash and the cost of a unit of inventory would include debits to which of the following accounts?

• A)Sales, $1,000; Inventory, $800
• B)Cash, $1,000; Cost of Goods Sold, $800
• C)Cash, $800; Cost of Goods Sold, $1,000
• D)Sales, $800; Inventory, $800

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Definitions:

Parking Lots

Designated areas where vehicles can be parked temporarily. These can be commercial ventures or part of public infrastructure.

Fences

Structures erected to enclose or delineate areas, or to prevent unauthorized access or egress.

Asset Turnover

A metric that evaluates how effectively a business utilizes its assets to produce sales income.

Net Sales

The revenue from sales after subtracting returns, allowances for damaged or missing goods, and discounts.