A Company That Uses the Perpetual Inventory System Sold Goods

question 31

Multiple Choice

A company that uses the perpetual inventory system sold goods to a customer for cash for $3,000. The cost of the goods sold was $1,000. Which of the following journal entries correctly records this transaction?

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Definitions:

Profitability

The state or condition of yielding a financial profit or gain.

Advertising

A means of communication with the users of a product or service, often aimed at promoting the sale of goods or services.

Little Information

A situation where there is a lack of sufficient or detailed data to fully understand a topic or make informed decisions.

Media

Various means of communication, including television, radio, newspapers, and the internet, used to disseminate information to the public.