A Company That Uses the Perpetual Inventory System Sold Goods $$\begin{array} { | c | r | r | } \hline \text { Cost of Goods Sold } & 2,300 & \\\hline \text { Sales Revenue } & & 2,300 \\\hline\end{array}$$

question 94

Multiple Choice

A company that uses the perpetual inventory system sold goods to a customer on account for $2,300.The cost of the goods sold was $1,150.Which of the following journal entries correctly records this transaction?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 2,300 & \\
• \hline \text { Sales Revenue } & & 2,300 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 2,300 & \\
• \hline \text { Cost of Goods Sold } & & 2,300 \\
• \hline
• \end{array}\]
• C) \(\begin{array}{|l|l|l|}
• \hline\text { Accounts Receivable } & 2,300 & \\
• \hline \text { Cash } & & 2,300 \\
• \hline \text { Cost of Goods Sold } & 1,150 & \\
• \hline \text { Merchandise Inventory } & & 1,150 \\
• \hline
• \end{array}\)
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 2,300 & \\
• \hline \text { Sales Revenue } & & 2,300 \\
• \hline \text { Cost of Goods Sold } & 1,150 & \\
• \hline \text { Merchandise Inventory } & & 1,150 \\
• \hline
• \end{array}\]

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Definitions:

Real GDP

An assessment of a country's economic production that is corrected for price fluctuations due to inflation or deflation, demonstrating the actual volume of goods and services created.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, reflecting the effects of inflation.

Inflation Rate

An upward adjustment in the price levels of goods and services witnessed in an economy over a set period.

Base Year

A reference year against which the economic growth, price levels, and other statistical figures are compared in index calculations.