Black Systems Sold and Delivered Modems to White Computers for $330,000

question 86

Multiple Choice

Black Systems sold and delivered modems to White Computers for $330,000 to be paid by White in three equal installments over the next three months. The journal entry made by Black Systems to record this transaction will include:

• A) A debit to Sales Revenue for $330,000.
• B) A debit to Accounts Receivable for $330,000.
• C) A debit to Accounts Receivable for $110,000.
• D) A debit to Cash Paid for $330,000.

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Definitions:

Ordering Costs

Expenses associated with the process of ordering inventory, including costs related to paperwork, communication, and transportation of goods.

Memory Chips

Electronic components used in devices for the purpose of data storage and processing.

Ordering Quantity

If this term refers to "Economic Order Quantity," it is a decision tool used in supply chain management to determine the optimal order size that minimizes total inventory costs.

Inventory Value

Inventory Value is the total cost associated with the goods and materials held by a company to produce or sell for profit.