[The Following Information Applies to the Questions Displayed Below

question 85

Multiple Choice

[The following information applies to the questions displayed below.]
Washington Warehouse is a small retail business that specializes in the sale of top-of-the-line televisions.This year,the store has begun to carry the Flat TV manufactured by Bass Co.Thus far,Washington has recorded the following transactions involving the Flat TV:

-If Washington uses a perpetual inventory system,the journal entry to record the sale on February 12th would include all of the following except:

• A)A debit to the Cost of Goods Sold for $12,600.
• B)A credit to Sales Revenue for $15,300.
• C)A credit to Purchases for $15,300.
• D)A credit to Inventory for $15,300.

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Definitions:

Not-For-Profit Corporation

A type of legal entity organized for purposes other than generating profit. Any surplus revenues are used to further its objectives rather than distributed to shareholders.

Surplus Revenue

the amount of income that exceeds the total cost of operations, often discussed in the context of businesses and government budgets.

Members

Individuals who belong to a group, organization, or body, having certain rights, roles, or obligations within it.

Not-For-Profit Corporation

An organization formed for purposes other than generating profit, where any income generated is used in pursuing its goals instead of being distributed as dividends.