A Company That Uses the Perpetual Inventory System Sold Goods

question 71

Multiple Choice

A company that uses the perpetual inventory system sold goods for $1,000 to a customer on account. The company had purchased the inventory for $400. Which of the following journal entries correctly records the cost of goods sold?

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Definitions:

Independence

The state of being self-sufficient and not reliant on others for decision-making or support.

Dependence

A state where an individual relies on a substance or behavior for normal functioning or feels unable to quit it.

Similarity

The degree to which two things resemble or match each other.

Personality

The amalgamation of traits or attributes that create a person's unique personality.