A Company That Uses the Perpetual Inventory System Purchased 500

question 112

Multiple Choice

A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $9,000 and paid $780 for the freight-in.The company sold the whole lot to a supermarket chain for $12,000 on account.The company uses the specific-identification method of inventory costing.Which of the following entries correctly records the cost of goods sold?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 9,780 & \\
• \hline \text { Merchandise Inventory } & & 9,780 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 9,780 & \\
• \hline \text { Cost of Goods Sold } & & 9,780 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 9,000 & \\
• \hline \text { Sales Revenue } & & 9,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 9,000 & \\
• \hline \text { Merchandise Inventory } & & 9,000 \\
• \hline
• \end{array}\]

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Definitions:

Common Factors

Elements that are typically found in successful outcomes across different therapies, suggesting they contribute to change regardless of specific treatment modalities.

Ashton and Lee

Psychologists Michael Ashton and Kibeom Lee, known for their work in personality traits, including the HEXACO model of personality structure.

Neuroticism

A characteristic of personality defined by feelings of anxiety, sadness, concern, envy, frustration, jealousy, and isolation.

Emotionality

Refers to the intensity and range of emotional responses observed in an individual.