A Company That Uses the Perpetual Inventory System Sold Goods

question 121

Multiple Choice

A company that uses the perpetual inventory system sold goods to a customer on account for $2,300.The cost of the goods sold was $1,150.Which of the following journal entries correctly records this transaction?

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Definitions:

Short Run

A period of time during which at least one factor of production is fixed, usually considered in economic models and analyses.

Long Run

A period of time in economics sufficiently long to allow for all inputs to production, such as plant and equipment, to be varied (as opposed to just the amount of labor or raw materials).

Total Loss

A situation in insurance where the cost of repairing a damaged property exceeds the property's value, making it economically unfeasible to repair.

Total Loss

The complete financial loss of an asset's value, often in the context of insurance or investments.