Bayer Company Uses the Periodic Inventory System

question 92

Multiple Choice

Bayer Company uses the periodic inventory system.Bayer Company sold goods on account with a retail price of $1,400 and a cost of $600.Which journal entry(ies) is(are) prepared?

• A)debit Accounts Receivable for $1,400 and credit Sales Revenue for $1,400
• B)debit Accounts Receivable for $600 and credit Sales Revenue for $600
• C)debit Accounts Receivable for $1,400 and credit Sales Revenue for $1,400,debit Cost of Goods Sold for $600 and credit Inventory for $600
• D)debit Inventory for $600 and credit Purchases for $600

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Definitions:

Encoding

The initial process of transforming information into a form that can be stored in memory, a critical step in the process of learning and memory formation.

Consolidation Failure

A cognitive process flaw where newly learned information fails to be stored correctly in long-term memory.

Proactive Interference

A phenomenon where older memories interfere with the recall of newer memories.

Reactive Interference

A phenomenon wherein newer information interferes with one's ability to recall older information.