Hexagon Corporation Sold a Product on Credit for $2,235 to Merin

question 98

Multiple Choice

Hexagon Corporation sold a product on credit for $2,235 to Merin Lynch.The cost of goods sold was $1,324.Assuming that the firm is following a perpetual inventory system and using a sales journal,it will record $2,235 in the ________.

• A)Accounts Receivable CR,Sales Revenue DR column
• B)Cost of Goods Sold DR,Merchandise Inventory CR column
• C)Merchandise Inventory DR,Cost of Goods Sold CR column
• D)Accounts Receivable DR,Sales Revenue CR column

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Definitions:

Unilateral Contracts

Contracts in which one party makes a promise in exchange for an act by the other party.

Forbearance

The act of refraining from enforcing a right or claim, particularly in the context of a creditor delaying foreclosure or collection.

Supply Chain

The network of all entities involved in producing and delivering a product to the final customer, from raw material sourcing to manufacturing and distribution.

Consumer Value

The perception of what a product or service is worth to a customer versus the possible alternatives.