Multiple Choice
Assume that a perpetual inventory system is in use.Which of the following statements regarding the journal entries prepared is correct?
A) "Freight-out" or delivery costs associated with sales should be included in Cost of Goods Sold.
B) When a company receives payment from a customer for a sale,Cash is debited and Accounts Payable is credited.
C) When a company grants an allowance to a customer,Inventory is credited when using a perpetual inventory system.
D) When a customer returns inventory,the seller debits Sales Revenue (or Sales Returns & Allowances) under a perpetual inventory system.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Cost of goods sold reports the:<br>A)cost of
Q2: Moreland Moldings purchased goods on credit costing
Q4: Match the term to the appropriate definition.There
Q5: Match the term to the appropriate definition.There
Q7: In a perpetual system,when inventory is sold
Q8: Most companies report sales revenue,sales returns and
Q9: Polk Company uses a perpetual inventory system
Q10: Which of the following statements about a
Q11: Windsor,Inc.uses a perpetual inventory system and reported
Q142: Match the term to the appropriate definition.There