Smithville Furniture Sold 15 Desks,with a Cost of $7,500,for $11,250

question 3

Multiple Choice

Smithville Furniture sold 15 desks,with a cost of $7,500,for $11,250 on account.Smithville uses the periodic inventory system.Which of the following is the correct way to record this transaction?

• A) \[\begin{array} { | l | l | l | }
• \hline \text { Accounts } & \text { Debit } & \text { Credit } \\
• \hline \text { Sales Revenue } & 11,250 & \\
• \hline \text { Accounts Receivable } & & 11,250 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts } & \text { Debit } & \text { Credit } \\
• \hline \text { Accounts Receivable } & 11,250 & \\
• \hline \text { Sales Revenue } & & 11,250 \\
• \hline \text { Cost of Goods Sold } & 7,500 & \\
• \hline \begin{array} { c }
• \text { Merchandise } \\
• \text { Inventory }
• \end{array} & & 7,500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | }
• \hline \text { Accounts } & \text { Debit } & \text { Credit } \\
• \hline \text { Accounts Receivable } & 11,25 & \\
• \hline \text { Sales Revenue } & & 11,250 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts } & \text { Debit } & \text { Credit } \\
• \hline \text { Accounts Receivable } & 11,250 & \\
• \hline \text { Sales Revenue } & & 11,250 \\
• \hline \text { Purchases } & 7,500 & \\
• \hline \begin{array} { c }
• \text { Merchandise } \\
• \text { Inventory }
• \end{array} & & 7,500 \\
• \hline
• \end{array}\]

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