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) \[\begin{array} { | c | l | l | }
• \hline \text { Cost of sales } & 500 & \\
• \hline \text { Sales revenue } & & 500 \\
• \hline
• \end{array}\]

---

Definitions:

Quality of Life

An individual's overall assessment of their wellbeing, including not only wealth and employment but also the environment, physical and mental health, education, recreation and leisure time, and social belonging.

Overeducated

The state of having education or qualifications that exceed what is necessary for one's job or position.

Underemployed

Describes individuals working in a job that does not fully utilize one's skills, education, or availability, often resulting in less than desired work hours or undercompensation.

Foodie

An individual with a particular interest in food and culinary practices, often seeking new food experiences.