If World of Sound Uses a Perpetual Inventory System, the Journal

question 26

Multiple Choice

If World of Sound uses a perpetual inventory system, the journal entry to record the sale on February 12th would include which of the following?

• A) A debit to the Cost of Goods Sold for $45,750.
• B) A credit to the Cost of Goods Sold for $45,750.
• C) A credit to Purchases for $45,750.
• D) A debit to Inventory for $45,750

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Definitions:

Algebra

A branch of mathematics dealing with symbols and the rules for manipulating those symbols, representing numbers and relationships.

Social Learning

The process of deriving attitudes from family, peer groups, religious organizations, and culture.

Cognitive Moral Development

The process of moving through stages of maturity with regard to making ethical decisions.

Peer Groups

A group of individuals, often of similar age, background, or social status, who associate with each other and may influence each other's attitudes, behaviors, and beliefs.