What Journal Entry Is Required When Inventory Is Sold During $\mathrm { Cr }$

question 22

Multiple Choice

What journal entry is required when inventory is sold during the year under the perpetual inventory system?

• A) Dr Cost of goods sold
• \(\mathrm { Cr }\) Inventory
• B) Dr Cost of goods sold
• \(\mathrm { Cr }\) Inventory
• Cr Purchases
• C) \[\text { No Journal Entry is made }\]
• D) Dr Purchases
• \(\mathrm { Cr }\) Accounts Payable

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Definitions:

Common Property

Resources or assets that are jointly owned or shared among individuals or groups, often leading to issues of overuse or mismanagement.

Over-Utilized

A condition where resources, services, or facilities are used to their maximum capacity, often leading to degradation or diminished quality.

Common Property

A type of good that is non-excludable and rivalrous, meaning it is accessible to all but can be depleted through use.

Overused

Refers to the excessive use of a resource or item to the point where it diminishes its value or leads to its degradation.