A Company Sold Merchandise Worth $221 for $350 on Account

question 31

Multiple Choice

A company sold merchandise worth $221 for $350 on account. The seller uses the perpetual inventory system. The entry to record the cost of merchandise sold would include:

• A)a debit to Sales and a credit to Cash for $350.
• B)a debit to Cash and a credit to Sales for $350.
• C)a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $221.
• D)a debit to Merchandise Inventory for $221 and a credit to Cost of Goods Sold for $221.

---

Definitions:

CNS

The central nervous system, composed of the brain and spinal cord, which processes and sends out neural signals.

PNS

The Peripheral Nervous System, which consists of the nerves and ganglia outside of the brain and spinal cord.

Cerebrospinal Fluid

The clear, colorless body fluid found in the brain and spinal cord, acting as a cushion and providing nutrients to these areas.

Composition

The act or process of creating or forming by combining parts, elements, or ingredients; can refer to writing, music, art, or any structured endeavor.