Tangent Corporation Sold a Product for $7,150 to Michael on Credit

question 32

Multiple Choice

Tangent Corporation sold a product for $7,150 to Michael on credit. The cost of goods sold is $5,650.Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $5,650 in the:

• A)Accounts Receivable DR, Sales Revenue CR column.
• B)Cost of Goods Sold DR, Merchandise Inventory CR column.
• C)Merchandise Inventory DR, Cost of Goods Sold CR column.
• D)Sales Revenue DR, Accounts Receivable CR column.

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Definitions:

Conservation

In cognitive psychology, the concept that children learn that quantity, length, or number remain the same despite changes in appearance or form.

Object Permanence

The understanding in human development that objects continue to exist even when they cannot be seen, heard, or touched.

Egocentric

A term referring to the inability or difficulty in understanding a perspective other than one's own.

Formal-Operations

A stage in Piaget's theory of cognitive development, typically beginning around age 12, where individuals start to use abstract and logical thinking.