Southeastern Company Sold Merchandise for $4,450 to Northern Company on Account.The

question 41

Multiple Choice

Southeastern Company sold merchandise for $4,450 to Northern Company on account.The cost of goods sold was $1,185.Southeastern Company uses a perpetual inventory system and special journals.The $4,450 is recorded as ________.

• A) an entry in the general journal
• B) Accounts Receivable DR, Sales Revenue CR column of the sales journal
• C) Merchandise Inventory DR column of the purchases journal
• D) Accounts Receivable CR column of cash receipts journal

---

Definitions:

Direct Labor Budget

A financial plan that estimates the cost of direct labor required to meet production goals within a specific period.

Direct Labor Rate

The cost per hour for direct labor applied to the production of goods or services.

Direct Labor-Hours

The sum of hours spent by workers directly engaged in producing a good or delivering a service.

Schedule of Expected Cash Collections

A financial report that outlines the anticipated inflow of cash from receivables or other income sources over a specific time period.