Addison, Inc -When Using a Perpetual Inventory System, the Journal Entry to Information

question 104

Multiple Choice

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:
$\begin{array} { r l l } \text { Sept. } 1 & \text { Inventory } & 20 \text { units at } \$ 20 \\ 4 & \text { Sale } & 10 \text { units } \\ 10 & \text { Purchase } & 30 \text { units at } \$ 25 \\ 17 & \text { Sale } & 20 \text { units } \\ 30 & \text { Purchase } & 10 \text { units at } \$ 30 \end{array}$
-When using a perpetual inventory system, the journal entry to record the cost of merchandise sold is

• A) debit Cost of Merchandise Sold; credit Sales
• B) debit Cost of Merchandise Sold; credit Merchandise Inventory
• C) debit Merchandise Inventory; credit Cost of Merchandise Sold
• D) No journal entry is made to record the cost of merchandise sold.

Recognize the influence of external factors on family dynamics.

Identify the components of the research process including analysis and ethical considerations.

Understand how to calculate net sales from gross sales by accounting for sales returns, allowances, and discounts.

Comprehend the recording of sales transactions, including the effect of payment terms on accounts receivable and the sales account.

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Definitions:

Mutually Exclusive

Two events or propositions that cannot both be true or occur at the same time.

Jointly Exhaustive

A set of options or categories is collectively comprehensive, covering all possible scenarios or outcomes.

Consistent Principle

A rule or concept that does not contradict itself and remains uniform across various situations or applications.

Essential Attributes

Fundamental qualities or characteristics that define or make up the essence of something.