A Company That Uses the Perpetual Inventory System Sold Goods $$\begin{array} { | c | r | r | } \hline \text { Cost of Goods Sold } & 4,200 & \\\hline \text { Sales Revenue } & & 4,200 \\\hline\end{array}$$

question 37

Multiple Choice

A company that uses the perpetual inventory system sold goods to a customer for cash for $4,200. The cost of the goods sold was $1,000. Which of the following journal entries correctly records this transaction?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 4,200 & \\
• \hline \text { Sales Revenue } & & 4,200 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 4,200 & \\
• \hline \text { Sales Revenue } & & 4,200 \\
• \hline
• \end{array}\]
• \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 1,000 & \\
• \hline \text { Merchandise Inventory } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 4,200 & \\
• \hline \text { Cash } & & 4,200 \\
• \hline
• \end{array}\]
• \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 1,000 & \\
• \hline \text { Merchandise Inventory } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 4,200 & \\
• \hline \text { Sales Revenue } & & 4,200 \\
• \hline
• \end{array}\]

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