A Company That Uses the Perpetual Inventory System Sold Goods

question 71

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?

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Definitions:

Formula Sales Presentation

A standardized and methodological approach to sales presentations, following a specific formula to achieve consistency and effectiveness in selling efforts.

High Pressure Selling

A sales approach characterized by aggressive tactics designed to pressure a customer into making a purchase decision quickly.

Memorized Sales Presentation

A pre-prepared script for a sales pitch that is memorized and delivered in a consistent manner to multiple potential buyers, focusing on product features and benefits.

Formula Sales Presentation

A structured approach to a sales presentation that relies on a proven sequence of steps designed to guide the potential customer toward a purchase.