Forever Jewelers Uses the Perpetual Inventory System $$\begin{array} { | c | r | r | } \hline \text { Sales Revenue } & 5,940 & \\\hline \text { Accounts Receivable } & & 5,940 \\\hline\end{array}$$

question 32

Multiple Choice

Forever Jewelers uses the perpetual inventory system.On April 2,Forever sold merchandise with a cost of $1,500 for $6,000 to a customer on account with terms of 1/15,n/30.Which of the following journal entries correctly records the sales revenue?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Sales Revenue } & 5,940 & \\
• \hline \text { Accounts Receivable } & & 5,940 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Sales Revenue } & 5,940 & \\
• \hline \text { Cost of Goods Sold } & & 5,940 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 1,500 & \\
• \hline \text { Sales Revenue } & & 1,500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 5,940 & \\
• \hline \text { Sales Revenue } & & 5,940 \\
• \hline
• \end{array}\]

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Definitions:

Social Security

A government program that provides financial assistance to people with an inadequate or no income, especially the elderly and disabled.

Payroll Taxes

Levies placed on either employers or employees, typically based on a proportion of the wages that staff receive from their employers.

Temperance

Moderation or self-restraint, especially in eating and drinking.

Prohibition

The period during which the manufacture, sale, and transportation of alcoholic beverages were banned in the United States through the 18th Amendment to the Constitution (1920-1933).