Under the Perpetual Inventory System, Three Office Desks Were Originally

question 26

Multiple Choice

Under the perpetual inventory system, three office desks were originally purchased on CR at $300 each plus 10% GST. If all three desks were sold to a customer at $550 each (including GST) what is the correct entry to record the cost of the sale?

• A) DR Cost of sales $1650; CR Sales $1650
• B) DR Cost of sales $900; CR Sales $900
• C) DR Cost of sales $900; CR Inventory $900
• D) DR Cost of sales $900; DR GST receivable $90; CR Inventory $990

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Definitions:

Economic Foundation

The underlying economic factors or structures that support and enable the development and sustainability of a society or organization.

Mesoamerican Mexico

Referring to the cultural and historical region in pre-Columbian Mexico characterized by significant civilizations like the Aztec and Maya.

Maize (Corn)

A staple cereal grain domesticated by indigenous peoples in Mesoamerica, pivotal to various cultures and economies worldwide.

San Lorenzo

An archaeological site in Mexico, notable for its colossal Olmec sculptures and as an early center of Olmec civilization.