A February 11 Journal Entry with the Following Information Was

question 71

Multiple Choice

A February 11 journal entry with the following information was included in the accounting records of Jumani Company: merchandise inventory,$7,000; cost of goods sold; $7,000.What is this entry needed for?

• A) to record cost of merchandise sold
• B) to record sales price of merchandise sold
• C) to record cost of merchandise returned by a customer
• D) to record net effect of a sales transaction

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Definitions:

Living Trust

A legal document that allows an individual, the trustor, to designate another person, the trustee, to manage their assets for the benefit of a third party, the beneficiary, while the trustor is still alive.

Corpus

The principal amount of a trust or estate, as distinguished from income or interest generated by it.

Property Held

Assets owned by an individual or entity, including real estate, investments, personal property, and intellectual property.

Trust

A fiduciary arrangement wherein one party, known as the trustee, holds assets for the benefit of another party, known as the beneficiary.