A Company Sold Merchandise for $350 That Cost $221

question 142

Multiple Choice

A company sold merchandise for $350 that cost $221.The entry to record the cost of the merchandise sold would be a:

• A) debit to Sales and a credit to Cash for $350.
• B) debit to Cash and a credit to Sales for $350.
• C) debit to Cost of goods sold and a credit to Inventory for $221.
• D) debit to Inventory for $221 and a credit to Cost of goods sold for $221.