A Company That Uses the Perpetual Inventory System Sold Goods $$\begin{array} { | c | r | r | } \hline \text { Cost of Goods Sold } & 4,000 & \\\hline \text { Sales Revenue } & & 4,000 \\\hline\end{array}$$

question 32

Multiple Choice

A company that uses the perpetual inventory system sold goods to a customer on account for $4,000. The cost of the goods sold was $2,000. Which of the following journal entries correctly records this transaction?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 4,000 & \\
• \hline \text { Sales Revenue } & & 4,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 4,000 & \\
• \hline \text { Cost of Goods Sold } & & 4,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 4,000 & \\
• \hline \text { Cash } & & 4,000 \\
• \hline
• \end{array}\]
• \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 2,000 & \\
• \hline \text { Merchandise Inventory } & & 2,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 4,000 & \\
• \hline \text { Sales Revenue } & & 4,000 \\
• \hline
• \end{array}\]
• \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 2,000 & \\
• \hline \text { Merchandise Inventory } & & 2,000 \\
• \hline
• \end{array}\]

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Definitions:

Combined Equivalent

A combined measure or assessment that brings together several different factors or values into a single, comprehensive figure.

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