Davis Hardware Company Uses a Periodic Inventory System B) Accounts Receivable

question 95

Multiple Choice

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

• A) \[\begin{array} { c c c } \text { Cost of Goods Sold } & 620 & \\ \text { Purchases } & & 620 \\ \text { Accounts Receivable } & 960 & \\ \text { Sales Revenue } & & 960 \end{array}\]
• B) Accounts Receivable \(\quad 960\) Sales Revenue\(\quad 960\)
• D) \[\begin{array} { c c r } \text { Accounts Receivable } & 960 & \\ \text { Sales Revenues } & 620 \\ \text { Gain } & 340 \end{array}\]

---

Definitions:

Department Head

A managerial position responsible for overseeing a specific department within an organization, often involving strategic planning and leadership of departmental staff.

Inexperienced Employees

Workers who are new to the job market or a particular field, lacking in knowledge, skills, and professional experience.

Follow-Through

The act of completing tasks or commitments one has started, ensuring that promised actions are fully executed.

Leadership Style

The approach and behavior a leader adopts in guiding, motivating, and managing followers, which can vary widely from one leader to another.