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:

Authority

The legitimate power or right granted to individuals or entities to make decisions, enforce rules, and command obedience within a specific context.

Attraction

A term that describes the force drawing people together, which can be physical, psychological, emotional, or based on interests or social factors.

Status Differentiation

The process by which social hierarchies or levels of prestige are established and recognized within a group or society.

Sociometric Differentiation

The process of evaluating and differentiating individuals within a group based on social connections and perceptions.