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Lindsey Corporation had the following account balances: Sales revenue $200,000 Beginning inventory 40,000 Purchases 80,000 Purchase discounts 3,000 Freight-in 1,000 Ending inventory 30,000 Purchases returns and allowances 2,000 With the perpetual inventory system, which of the following entries would be made when inventory costing $3,600 is sold for $5,000? a. Cost of goods sold 3,600 Inventory 3,600 b. Inventory 5,000 Accounts payable 5,000 c. Inventory 3,600 Cost of goods sold 5,000 Accounts payable 3,600 Purchases 5,000 d. Purchases 5,000

Lindsey Corporation had the following account balances: Sales revenue $200,000 Beginning inventory 40,000 Purchases 80,000 Purchase discounts 3,000 Freight-in 1,000 Ending inventory 30,000 Purchases returns and allowances 2,000 With the perpetual inventory system, which of the following entries would be made when inventory costing $3,600 is sold for $5,000? a. Cost of goods sold 3,600 Inventory 3,600 b. Inventory 5,000 Accounts payable 5,000 c. Inventory 3,600 Cost of goods sold 5,000 Accounts payable 3,600 Purchases 5,000 d. Purchases 5,000

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 46E
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Lindsey Corporation had the following account balances:
Sales revenue $200,000
Beginning inventory 40,000
Purchases 80,000
Purchase discounts 3,000
Freight-in 1,000
Ending inventory 30,000
Purchases returns and allowances 2,000

With the perpetual inventory system, which of the following entries would be made when inventory costing $3,600 is sold for $5,000?
a. Cost of goods sold 3,600
Inventory 3,600
b. Inventory 5,000
Accounts payable 5,000
c. Inventory 3,600
Cost of goods sold 5,000
Accounts payable 3,600
Purchases 5,000
d. Purchases 5,000

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