Landon Jewelers Uses the Perpetual Inventory System B) $$\begin{array} { | c | r | r | } \hline \text { Sales Revenue } & 1,500 & \\\hline \text { Cost of Goods Sold } & & 1,500 \\\hline\end{array}$$

question 243

Multiple Choice

Landon Jewelers uses the perpetual inventory system.On April 2,Landon sold merchandise with a cost of $1,500 for $7,000 to a customer on account with terms of 1/15,n/30.The journal entry to record the cost of goods sold would be:

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 1,500 & \\
• \hline \text { Accounts Receivable } & & 1,500 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Sales Revenue } & 1,500 & \\
• \hline \text { Cost of Goods Sold } & & 1,500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 1,500 & \\
• \hline \text { Merchandise Inventory } & & 1,500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 1,500 & \\
• \hline \text { Cost of Goods Sold } & & 1,500 \\
• \hline
• \end{array}\]

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Definitions:

Free Trade

An economic policy allowing imports and exports to occur without government intervention such as tariffs, quotas, or other restrictions.

Sugar

A sweet-flavored substance sourced primarily from sugarcane and sugar beets, used widely as a sweetener in food and beverages.

Government Interference

Actions taken by the government to influence the economy or specific industries, which can include regulations, taxes, or subsidies.

Country

A distinct territorial body or political entity recognized as an independent nation.