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:

Competitive Advantage

A unique attribute or ability that allows an organization to outperform its competitors.

Value Perception

The customer's evaluation of the worth of a product or service based on its ability to meet their needs and expectations.

Revenue Analysis

The examination of income generated from sales, investments, or business operations to understand the financial health and profitability of a business.

Market Share Analysis

An assessment of a company's sales in relation to the total sales in its industry, indicating competitiveness and market dominance.