A Company That Uses the Perpetual Inventory System Sold Goods $$\begin{array} { | c | r | r | } \hline \text { Cost of Goods Sold } & 4,600 & \\\hline \text { Sales Revenue } & & 4,600 \\\hline\end{array}$$

question 80

Multiple Choice

A company that uses the perpetual inventory system sold goods to a customer for cash for $4,600.The cost of the goods sold was $1,000.Which of the following journal entries correctly records this transaction?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 4,600 & \\
• \hline \text { Sales Revenue } & & 4,600 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 4,600 & \\
• \hline \text { Sales Revenue } & & 4,600 \\
• \hline \text { Cost of Goods Sold } & 1,000 & \\
• \hline \text { Merchandise Inventory } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 4,600 & \\
• \hline \text { Cash } & & 4,600 \\
• \hline \text { Cost of Goods Sold } & 1,000 & \\
• \hline \text { Merchandise Inventory } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 4,600 & \\
• \hline \text { Sales Revenue } & & 4,600 \\
• \hline
• \end{array}\]

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Definitions:

Retrieval Cues

Stimuli that help you retrieve a certain memory. They are often related to the context in which the original learning took place.

Recall

The act of retrieving information or events from the past in one's memory.

Nonsense Syllables

Random strings of letters without inherent meaning, often used in memory and learning experiments to study the processes of human cognition.

Ebbinghaus

Refers to Hermann Ebbinghaus, a psychologist known for his research on memory, specifically the forgetting curve and the spacing effect.