A Company Sold Merchandise with a Cost of $217 for $390

question 208

Multiple Choice

A company sold merchandise with a cost of $217 for $390 on account.The seller uses the perpetual inventory system.The entry to record the cost of merchandise sold would include ________.

• A) a debit to Sales Revenue and a credit to Cash for $390
• B) a debit to Cash and a credit to Sales Revenue for $390
• C) a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $217
• D) a debit to Merchandise Inventory for $217 and a credit to Cost of Goods Sold for $217

---

Definitions:

International Boundary

The officially recognized line that separates one country from another, defining the geographical limits of sovereign jurisdictions.

Translators

Individuals or software that convert text or speech from one language to another, enabling communication across different languages.

Common Property Resources

Resources like land, air, and water that are not owned privately but are available for use by an entire community or society.

Single Ownership

A business model where a single individual owns all of the firm's stock and is solely responsible for its decisions.