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s2008m [1.1K]
2 years ago
5

Cumberland Co. sells $1,114 of merchandise to Hancock Co. for cash. Cumberland paid $779 for the merchandise. Under a perpetual

inventory system, which of the following is the correct journal entry(is)?
a. debit Cash, $1.084 credit Merchandise Inventory: $722
b. debit Cash. $1,084. credit Sales. $1.084 and debit Cost of Merchandise Sold. 722credit Merchandise Inventory: 5722
c. debit Accounts Receivable. $1,084, credit Sales. $1,084, and debit Cost of Merchandise Sold, 5722 credit Merchandise Inventory, 5722
d. debit Cash 5722: credit Sales. $722
Business
1 answer:
elixir [45]2 years ago
4 0

Answer:

Debit Cash $1,114

Credit Sales $1,114

Debit Cost of merchandise sold $779

Credit Merchandise inventory $779

Explanation:

Based on the information given the correct journal entry(is):

Debit Cash $1,114

Credit Sales $1,114

Debit Cost of merchandise sold $779

Credit Merchandise inventory $779

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If Net Sales at​ Sassy's Sweet Factory increased from​ $37,000 to​ $58,000 and its cost of goods sold increased from​ $17,000 to
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Vertical Analysis: The vertical analysis does the analysis of the financial statements which is based on the sales value.

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Vertical Analysis = Financial Statement item ÷ sales value × 100

So,

For the cost of good sold. the vertical analysis would be:

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Hence, the vertical analysis based on net sales would show 45.94% and 74.13% for the cost of goods​ sold.

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