A Company That Uses the Perpetual Inventory System Sold Goods $$\begin{array} { | c | l | l | } \hline \text { Accounts receivable } & 500 & \\\hline \text { Sales revenue } & & 500 \\\hline\end{array}$$

question 66

Multiple Choice

A company that uses the perpetual inventory system sold goods for $3700 to a customer on account.The company had purchased the inventory for $500.Which of the following journal entries correctly records the cost of sales?

• A) \[\begin{array} { | c | l | l | }
• \hline \text { Accounts receivable } & 500 & \\
• \hline \text { Sales revenue } & & 500 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | l | l | }
• \hline \text { Cost of sales } & 500 & \\
• \hline \text { Inventory } & & 500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | l | l | }
• \hline \text { Inventory } & 500 & \\
• \hline \text { Cost of sales } & & 500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | l | l | }
• \hline \text { Cost of sales } & 500 & \\
• \hline \text { Sales revenue } & & 500 \\
• \hline
• \end{array}\]

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Definitions:

Exposure Therapies

Psychological treatments that involve the exposure to feared stimuli or situations in order to reduce anxiety and desensitize individuals to the source of their fear.

Compulsive Behavior

Behavior patterns that are repeated to reduce anxiety or distress but are not connected in a realistic way with what they are designed to neutralize.

Cognitive-Behavioral Theorists

Experts in a psychological field that melds cognitive and behavioral approaches to understand and treat psychological disorders.

Compulsions

Actions or thoughts that a person compulsively repeats due to obsessions or strict guidelines.