The Accounts in the Ledger of Monroe Entertainment Co

question 30

Multiple Choice

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances. ​ ​
Prepare a trial balance. The total of the debits is

• A) $13,900
• B) $11,200
• C) $12,700
• D) $9,700

---

Definitions:

Perpetual System

An inventory system that continuously tracks inventory levels and cost of goods sold in real-time.

Merchandise Inventory

The total value of a company's goods held for sale to customers in the ordinary course of business.

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including materials and labor.

Perpetual System

Perpetual System is an inventory tracking system where inventory and cost of goods sold are updated continuously with each sale or purchase.