Which of the Following Journal Entries Is One of the Entries

question 30

Multiple Choice

Which of the following journal entries is one of the entries made to record a credit sale under the perpetual inventory system?

• A) DR Cost of goods sold\(\quad\)\(\quad\)\(\quad\)CR Inventory
• B) DR Cost of goods sold\(\quad\)\(\quad\)\(\quad\)CR Sales
• C) DR Inventory\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)CR Cost of goods sold
• D) DR Accounts receivable\(\quad\)\(\quad\) CR Sales

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Definitions:

JIT Inventory

Just-In-Time Inventory; a management strategy that aligns raw-material orders from suppliers directly with production schedules.

Disbursement of Funds

The act of paying out or distributing money, such as dividends to shareholders or expenditures to fulfill obligations or purchase assets.

Collateral Position

The assets that a borrower offers to a lender as security for the repayment of a loan, potentially forfeited in case of default.

Disbursement of Funds

The act of paying out money from a fund or account to cover expenses or investments.