A Company That Uses the Perpetual Inventory System Sold $1,000

question 106

Multiple Choice

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

---

Definitions:

Chief Architect

The primary architect responsible for the overall design and conceptual framework of a building or project.

Republic of Venice

A sovereign state and maritime republic in northeastern Italy, which existed from the 8th century until 1797.

Palladio

Italian architect Andrea Palladio, active during the Renaissance in the 16th century, known for his influential architectural treatises and classical style.

Mannerist Painter

An artist associated with the Mannerism movement, which emerged in the late Renaissance, characterized by artificiality, elongated proportions, and a tension between naturalism and exaggeration.