Cobbe Sales Sold 400 Units of Product to a Customer

question 118

Essay

Cobbe Sales sold 400 units of product to a customer on account.The selling price was $28 per unit,and the cost,according to the company's inventory records,was $14 per unit.Provide the journal entry to record the cost of goods sold.(Assume a perpetual inventory system. )

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Definitions:

Minneapolis

A major city in Minnesota, United States, known for its parks and lakes, as well as being a cultural and economic hub.

Central Bank

The main financial institution of a country, which regulates the money supply and interest rates and oversees the banking system.

1913

A year notable for several key historical events, including the ratification of the 16th Amendment to the U.S. Constitution, introducing the federal income tax.

Excess Reserves

Banks' reserves that exceed the minimum reserve requirements set by central banking authorities, indicating additional liquidity.