Question

A company that uses the perpetual inventory system sold goods to a customer for cash for​ $4,600. The cost of the goods sold was​ $1,000. Which of the following journal entries correctly records this​ transaction? A. Accounts Receivable ​4,600 Cash ​4,600 Cost of Goods Sold ​1,000 Merchandise Inventory ​1,000 B. Cash ​4,600 Sales Revenue ​4,600 Cost of Goods Sold ​1,000 Merchandise Inventory ​1,000 C. Merchandise Inventory ​4,600 Sales Revenue ​4,600 D. Cost of Goods Sold ​4,600 Sales Revenue

Answer 1

Answer:

B. Cash ​4,600 Sales Revenue ​4,600 Cost of Goods Sold ​1,000 Merchandise Inventory ​1,000

Explanation:

The journal entry is as follows

Cash                           $4,600

        To Sales Revenue $4,600

(Being the goods are sold for cash is recorded)

Cost of Goods Sold $1,000

           To Merchandise Inventory           $1,000

(Being the cost of the goods is recorded)

These two entries are recorded for recording the cash and the cost of the inventory