Centium Corporation Sold Goods to John Dunn for $1,000 on Account.Cost

question 103

Multiple Choice

Centium Corporation sold goods to John Dunn for $1,000 on account.Cost of goods sold was $745.Centium uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

• A)Accounts Receivable DR,Sales Revenue CR
• B)Cost of Goods Sold CR,Merchandise Inventory DR
• C)Cost of Goods Sold DR,Merchandise Inventory CR
• D)Sales Revenue DR,Accounts Receivable CR

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Definitions:

Coinsurance Clause

A provision in an insurance policy that requires the policyholder to bear a portion of the losses to the extent specified in the policy.

Fair Market Value

The price that a knowledgeable, willing, and unpressured buyer would pay to a knowledgeable, willing, and unpressured seller in the market.

Insurance Proceeds

The money received from an insurance claim, which compensates for a loss or damage.

Subrogation Clause

A provision in an insurance policy allowing the insurer to take legal action in the name of the insured against a third party responsible for the insured’s loss.