A Company That Uses the Perpetual Inventory System Sold Goods

question 113

Multiple Choice

A company that uses the perpetual inventory system sold goods to a customer on account for $2,000. The cost of the goods sold was $1,000. Which of the following journal entries correctly records this transaction?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } &\quad\quad 2,000 & \\
• \hline \text { Sales Revenue } & &\quad\quad\quad 2,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 2,000 & \\
• \hline \text { Cost of Goods Sold } & & 2,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 2,000 & \\
• \hline \text { Cash } & & 2,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 2,000 & \\
• \hline \text { Sales Revenue } & & 2,000 \\
• \hline
• \end{array}\]
• \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 1,000 & \\
• \hline \text { Merchandise Inventory } & & 1,000 \\
• \hline
• \end{array}\]

---

Definitions:

Citizenship Rights

The rights and privileges granted by a state to its citizens, typically including the right to vote, work, and live in the country, and receive protection from the state.

Discriminatory Laws

Legislation that enacts inequality or unfair treatment of individuals or groups based on race, gender, age, or other criteria.

Boycotts

The withdrawal from commercial or social relations with a country, organization, or person as a form of protest or punishment.

Symbolic Constitution

A theoretical construct or interpretation of a constitution that emphasizes its role as a symbol of national values and principles rather than just a set of legal rules.