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Blue Sky,Inc

question 102

Essay

Blue Sky,Inc.sold 500 units of inventory at $25 per unit for cash.The company uses the perpetual inventory system.The cost of the units sold was $10 per unit.Provide the journal entries to record the sale.


Definitions:

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit, encompassing stocks, bonds, real estate, and other assets.

Principal

An amount of money borrowed from a lender.

Equity Funds

Investment funds that primarily invest in stocks with the aim of achieving growth by capital gains and dividends for their investors.

Periodic Repayments

Regular payments made over time to settle a debt or loan, often consisting of both principal and interest components.

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