Tangent Corporation Sold a Product for $7,150 to Michael Cardon

question 3

Multiple Choice

Tangent Corporation sold a product for $7,150 to Michael Cardon on credit.The cost of goods sold is $5,650.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $5,650 in the ________.

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

---

Definitions:

Idle Capacity

The portion of a company's resources, such as labor or machinery, that is not being used to its full potential during the production process.

Joint Processing Costs

The expenses incurred during the initial stages of processing where multiple products are produced simultaneously before they are split into separate components.

Split-off Point

The stage in a production process where multiple products are derived from a single input or process, each taking a different processing route afterward.

Sales Value

The total revenue generated from the sale of goods or services by a company during a particular period.