Multiple Choice
BetterBuy sells a computer from inventory for $599 on credit.BetterBuy originally bought the computer from IBM for $395 and uses the perpetual inventory system.How is the sale recorded in BetterBuy's journal entries?
A) Debit Cash for $599,credit Sales for $599;debit Cost of goods sold for $395 and credit Inventory for $395.
B) Debit Accounts Receivable for $599,credit Inventory for $395,and credit gross profit for $204.
C) Debit Accounts Receivable for $599,credit Sales for $599;debit Cost of Goods Sold for $395 and credit Inventory for $395.
D) Debit Inventory for $395,debit Cost of Goods Sold for $204,and credit Accounts Receivable for $599.
Correct Answer:
Verified
Correct Answer:
Verified
Q58: Thirty years ago,most companies relied mainly upon
Q59: When a customer returns for credit a
Q61: On June 15,Oakley Inc.sells merchandise on account
Q62: Use the information above to answer the
Q63: Which of the following statements is true?<br>A)Because
Q64: Which of the following items on a
Q65: Which of the following bank reconciliation items
Q67: E.Flynn Company uses a perpetual inventory system
Q68: What is the amount of gross profit?<br>A)$94,200<br>B)$98,700<br>C)$105,000<br>D)$32,700
Q106: Sales discounts are discounts that consumers get