Tangent Corporation Sold a Product for $7,150 to Michael Cardon

question 3

Multiple Choice

Tangent Corporation sold a product for $7,150 to Michael Cardon on credit.The cost of goods sold is $5,650.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $5,650 in the ________.

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

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Definitions:

Transactions

Financial events that affect an entity's financial statements, involving transfers or exchanges of value between parties.

Undeposited Funds

An account used in accounting to hold funds that have been received but not yet deposited into a bank account.

Customer Payments

The transactions where a customer pays the company for goods or services provided.

Asset Account

An account on a balance sheet representing resources owned by a company with future economic value.