Davis Hardware Company Uses a Perpetual Inventory System $\quad 620$ Cost of Goods Sold

question 37

Multiple Choice

Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of inventory costing $620 for $960 on account?

• A) Inventory\(\quad 620\)
• Cost of Goods Sold\(\quad 620\)
• Sales Revenue \(\quad 960\)
• Accounts Receivable\(\quad 960\)
• B) Accounts Receivable \(\quad 960\)
• Sales Revenue\(\quad 960\)
• Cost of Goods Sold \(\quad 620\)
• Inventory\(\quad 620\)
• C) \(\begin{array} { l l } \text { Inventory } & 620 \\ \text { Gain } & 340\\ \text {Sales Revenue}&960 \end{array}\)
• D) Accounts Receivable\(\quad 960\)
• Sales Revenues\(\quad 620\)
• Gain\(\quad 340\)

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