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:

Bureaucracy

An organizational system characterized by standardized procedures, hierarchical division of labor, and emphasis on formal written documentation.

Interpersonal Interactions

The exchanges and communications between people, which can be verbal or non-verbal, and influence relationships and social dynamics.

Work Hours

The period of time during a day, week, or other defined period that is designated for professional activities or employment.

Group Memberships

The state or fact of being a member of a social group, which influences identity, beliefs, and behavior through social connections.