A Company That Uses the Perpetual Inventory System Sold Goods $$\begin{array} { | c | r | r | } \hline \text { Cost of Goods Sold } & 800 & \\\hline \text { Sales Revenue } & & 800 \\\hline\end{array}$$

question 22

Multiple Choice

A company that uses the perpetual inventory system sold goods for $2,400 to a customer on account.The company had purchased the inventory for $800.Which of the following journal entries correctly records the cost of goods sold?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 800 & \\
• \hline \text { Sales Revenue } & & 800 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 800 \\
• \hline \text { Cost of Goods Sold } & & 800 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 800 & \\
• \hline \text { Merchandise Inventory } & & 800 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 800 & \\
• \hline \text { Sales Revenue } & & 800 \\
• \hline
• \end{array}\]

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Definitions:

Stakeholders

Individuals, groups, or organizations that have an interest or concern in a business or project and can be affected by its outcomes.

Nonprofit Organizations

Organizations that operate for the promotion of a particular social cause or point of view, rather than for profit. They reinvest any surplus to further their mission.

Limited Funds

A condition where resources, particularly financial, are restricted or scarce.

Complex Goals

Objectives that are multifaceted and involve multiple steps or components, often requiring detailed planning and coordination to achieve.