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?

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Definitions:

German Immigrants

Individuals from Germany who migrated to another country, significantly impacting the cultural and social composition of their new communities, especially in the 19th and early 20th centuries.

Craftsmen

Skilled workers who create products using their hands, often employing traditional techniques in various trades such as carpentry, metalwork, or weaving.

Shopkeepers

Individuals who own or operate retail businesses, selling goods to the public in shops or similar establishments.

Catholic Church

A major worldwide Christian church led by the Pope, based in Vatican City.