Refer to the Information Above

question 66

Multiple Choice

Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the sale on February 12th would include all of the following except:

• A) A debit to the Cost of Goods Sold for $15,300.
• B) A credit to Sales Revenue for $18,200.
• C) A credit to Purchases for $15,300.
• D) A credit to Inventory for $15,300.

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Definitions:

Good Title

A rightful or legitimate claim to the ownership of property or legal recognition of the ownership of property.

Security Interest

A legal claim or right on property as collateral to secure the performance of an obligation, usually the repayment of a debt.

Attached

Being joined or associated with something else, typically in the context of legal or official documents and properties.

Perfected

In legal terms, this refers to the completion of all necessary legal steps to enforce one's rights to an asset or interest.