A Company Purchased Inventory for $800 Per Unit

question 160

Multiple Choice

A company purchased inventory for $800 per unit. The company later sold the inventory for $1,000 per unit. The entries to record the sale for cash and cost of goods sold would include debits to which of the following accounts?

• A) Sales, $1,000; Inventory, $800
• B) Cash, $1,000; Cost of Goods Sold, $800
• C) Cash, $800; Cost of Goods Sold, $1,000
• D) Sales, $800; Inventory, $800

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Definitions:

Computer Files

Digital documents, data, or programs stored on a computer or digital storage media that can be accessed and used by computer software.

Electricity

A form of energy resulting from the existence of charged particles, such as electrons or protons, typically used as a power source.

Fraudulently

Acting with intentional deception or dishonesty to gain an unauthorized benefit or to harm another party.

Forgery

The crime of creating, altering, or imitating objects, statistics, or documents with the intent to deceive.