A Company That Uses the Perpetual Inventory System Purchased 500 $$\begin{array} { | c | r | r | } \hline \text { Accounts Receivable } & 13,000 & \\\hline \text { Sales Revenue } & & 13,000 \\\hline\end{array}$$

question 71

Multiple Choice

A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $10,000 and paid $950 for the freight-in. The company sold the whole lot to a supermarket chain for $13,000 on account. Which of the following entries correctly records the sale?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 13,000 & \\
• \hline \text { Sales Revenue } & & 13,000 \\
• \hline
• \end{array}\]
• \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 10,950 & \\
• \hline \text { Merchandise Inventory } & & 10,950 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 13,000 & \\
• \hline \text { Cost of Goods Sold } & & 13,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 13,000 & \\
• \hline \text { Sales Revenue } & & 13,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 13,000 & \\
• \hline \text { Sales Revenue } & & 13,000 \\
• \hline
• \end{array}\]
• \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 10,000 & \\
• \hline \text { Merchandise Inventory } & & 10,000 \\
• \hline
• \end{array}\]

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