On October 1,Robertson Company Sold Merchandise in the Amount of $5,800

question 122

Multiple Choice

On October 1,Robertson Company sold merchandise in the amount of $5,800 to Alberts,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Robertson uses the periodic inventory system.The journal entry or entries that Robertson will make on October 1 is:

• A)
• \(\begin{array}{|l|r|r|}
• \hline \text { Sales } & 5,800 & \\
• \hline \text { Accounts receivable } & & 5,800 \\
• \hline
• \end{array}\)
• B)
• \[\begin{array} { | l | r | r | }
• \hline \text { Sales } & 5,800 & \\
• \hline \text { Accounts receivable } & & 5,800 \\
• \hline \text { Cost of goods sold } & 4,000 & \\
• \hline \text { Merchandise Inventory } & & 4,000 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | c | r | r | }
• \hline \text { Accounts receivable } & 5,800 & \\
• \hline \text { Sales } & & 5,800 \\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | l | r | r | }
• \hline \text { Accounts receivable } & 5,800 & \\
• \hline \text { Sales } & & 5,800 \\
• \hline \text { Cost of goods sold } & 4,000 & \\
• \hline \text { Merchandise inventory } & & 4,000 \\
• \hline
• \end{array}\]
• E)
• \[\begin{array} { | c | r | r | }
• \hline \text { Accounts receivable } & 4,000 & \\
• \hline \text { Sales } & & 4,000 \\
• \hline
• \end{array}\]

Understand and calculate profitability ratios to assess earnings performance.

Understand the concept of ratio and its application in financial analysis.

Calculate and interpret asset management ratios to evaluate how effectively a company is using its assets.

Calculate and interpret liquidity ratios to assess a company's ability to meet short-term obligations.

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Definitions:

Canadian Prairies

A vast geographical region in Western Canada known for its flat terrain and grassy landscapes, crucial for agriculture and home to many species of plants and animals.

Cultivated Land

Land that has been prepared and used for crop production through plowing, sowing, and managing crops.

Conventional Tillage

A traditional farming method involving the plowing of land to prepare for sowing seeds, which can lead to soil erosion.

Conservation Tillage

An agricultural practice that minimizes soil erosion and water loss by leaving crop residue on fields between seasons.