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An item of merchandise was sold for RO 1600 cash by a business using the perpetual inventory system. The cost of Merchandise is RO 1200. Which of the following journal entry is correct for the Merchandise cost of goods sold? a. Debit Merchandise inventory RO 400 Credit Cost of goods sold RO 400 b. Debit Accounts receivable RO 1200 Credit Sales RO 1200 c. Debit Cash RO 1600 Credit Sales RO 1600 d. Debit Cost of goods sold RO 1200 Credit Merchandise inventory RO 1200

An item of merchandise was sold for RO 1600 cash by a business using the perpetual inventory system. The cost of Merchandise is RO 1200. Which of the following journal entry is correct for the Merchandise cost of goods sold? a. Debit Merchandise inventory RO 400 Credit Cost of goods sold RO 400 b. Debit Accounts receivable RO 1200 Credit Sales RO 1200 c. Debit Cash RO 1600 Credit Sales RO 1600 d. Debit Cost of goods sold RO 1200 Credit Merchandise inventory RO 1200

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 13MC: Which of the following accounts are used when recording the sales entry of a sale on credit? A....
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An item of merchandise was sold for RO 1600 cash by a business using the perpetual inventory system. The cost of Merchandise is RO 1200. Which of the following journal entry is correct for the Merchandise cost of goods sold? a. Debit Merchandise inventory RO 400 Credit Cost of goods sold RO 400 b. Debit Accounts receivable RO 1200 Credit Sales RO 1200 c. Debit Cash RO 1600 Credit Sales RO 1600 d. Debit Cost of goods sold RO 1200 Credit Merchandise inventory RO 1200
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