BetterBuy Sells a Computer from Inventory for $599 on Credit

question 78

Multiple Choice

BetterBuy sells a computer from inventory for $599 on credit.BetterBuy originally bought the computer from IBM for $395.What are the journal entries Betterbuy would record?

• A)Debit Cash for $599,credit Sales for $599; debit Inventory for $395 and credit Cost of Goods Sold for $395.
• B)Debit Accounts Receivable for $599,credit Inventory for $395,and credit Retained Earnings for $204.
• C)Debit Accounts Receivable for $599,credit Sales for $599; debit Cost of Goods Sold for $395 and credit Inventory for $395.
• D)Debit Inventory for $395,debit Cost of Goods Sold for $204,and credit Accounts Receivable for $599.

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Definitions:

Trade Union

An organization of workers designed to facilitate collective bargaining with employers over wages, work conditions, and benefits.

Human Relations

Interactions and relationships between people, especially in the workplace, emphasizing communication and cooperation.

Primary Labour Market

Refers to sectors of the economy offering high-quality, secure jobs with good pay, benefits, and opportunities for advancement.

Secondary Labour Market

A segment of the labor market characterized by low-paying, insecure jobs, and often with limited opportunities for advancement.