Folger Company Uses the Perpetual Inventory Method

question 73

Multiple Choice

Folger Company uses the perpetual inventory method. Folger sold goods that cost $4,600 for $7,200. If the sale was made on account, the sale will:

• A)increase total assets by $2,600.
• B)increase total equity by $7,200.
• C)decrease total assets by $4,600.
• D)increase total assets by $7,200.

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Definitions:

Chlorine

A chemical element with symbol Cl and atomic number 17, known for its high reactivity and use as a disinfectant.

Ionic Compound

A chemical compound comprising ions held together by electrostatic forces termed ionic bonding.

Lewis Dot Structure

An illustration depicting the connections between a molecule's atoms and displaying the presence of electrons that are not bonded, if any.

Calcium

A metallic chemical element essential for living organisms, particularly in cell physiology and bone formation.