Using a Perpetual Inventory System,what Journal Entry(ies)is(are)prepared When Two Units

question 52

Multiple Choice

Using a perpetual inventory system,what journal entry(ies) is(are) prepared when two units of merchandise are sold on account?

• A)debit Accounts Receivable and credit Sales Revenue only
• B)debit Cash and credit Sales Revenue only
• C)debit Accounts Receivable and credit Sales Revenue; debit Cost of Goods Sold and credit Inventory
• D)debit Accounts Receivable and credit Sales Revenue; debit Inventory and credit Cost of Goods Sold

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Definitions:

Accounts Payable

Money owed by a business to its suppliers.

Cash Inflow

The movement of money into a business or project, contributing to its financial resources.

Payment to Suppliers

Financial transactions that involve settling debts with vendors who provide goods or services to a business.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.