A Company That Uses the Perpetual Inventory System Purchased 500

question 71

Multiple Choice

A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $7,000 and paid $800 for the freight-in.The company sold the whole lot to a supermarket chain for $12,000 on account.Which of the following entries correctly records the sale?

---

Definitions:

Magma Chambers

Large pools of molten rock located beneath the Earth's surface, where magma accumulates before it is erupted as lava during a volcanic eruption.

Reef

A structure formed in shallow waters by the growth and deposit of marine organisms such as corals and calcareous algae, providing diverse habitats for marine life.

Transform Fault

A type of fault where two tectonic plates slide past each other horizontally, often causing earthquakes.

Transform Fault

A type of fault where two tectonic plates slide horizontally past each other, typically associated with seismic activity.