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

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Definitions:

Assumption

An accepted fact or statement taken for granted without proof.

Evolutionary Perspective

A theoretical approach in various fields that examines the evolutionary basis of behavior and traits.

Bonding Process

The development of a close, interpersonal relationship between individuals through emotional attachment, trust, and mutual understanding.

Survival

The ability to continue living or existing, especially under adverse or unusual conditions.