Hexagon Corporation Sold a Product on Credit for $2,235 to Merin

question 71

Multiple Choice

Hexagon Corporation sold a product on credit for $2,235 to Merin Lynch.The cost of goods sold was $1,324.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $2,235 in the ________.

• A)Accounts Receivable CR,Sales Revenue DR column
• B)Cost of Goods Sold DR,Merchandise Inventory CR column
• C)Merchandise Inventory DR,Cost of Goods Sold CR column
• D)Accounts Receivable DR,Sales Revenue CR column

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Definitions:

Setup Time

The time required to prepare equipment, machines, or systems for a manufacturing process or production run.

Daily Production

The total amount of output produced by a company or industry in a single day, often measured to assess operational efficiency.

Holding Cost

The expenses incurred to store and maintain inventory over a period, including storage, insurance, taxes, and depreciation.

Lot Size

The quantity of a particular product that is produced or purchased at one time, influencing inventory levels and production planning.