A Company That Uses the Perpetual Inventory System Sold Goods

question 15

Multiple Choice

A company that uses the perpetual inventory system sold goods to a customer for cash for $3,000.The cost of the goods sold was $1,000.Which of the following journal entries correctly records this transaction?

---

Definitions:

Assets

Resources owned or controlled by a business that are expected to produce economic value.

Liabilities

Financial obligations or debts that a company owes to external parties, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Creditors

Individuals or entities that are owed money by a debtor because they have provided goods, services, or loans.

Statement Of Changes In Equity

A financial statement that shows how the equity of a company has changed over a period due to various factors like profits, losses, and distributions to shareholders.