Hexa Corporation Sold a Product on Credit for $2,235 to Merin

question 119

Multiple Choice

Hexa Corporation sold a product on credit for $2,235 to Merin. The cost of goods sold was $1,324. Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $2,235 in the:

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

---

Definitions:

Market Rate

The prevailing interest rate available in the marketplace for securities or loans, which varies based on demand, supply, and economic conditions.

Bond Interest

The periodic payment made to bondholders, typically a fixed rate of interest paid on the bond's face value.

Tax Purposes

The consideration or treatment of transactions, events, or financial situations in relation to calculating tax liabilities.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.