) Using a perpetual inventory system, how should a company record the sale of inventory costing $620 for $960 on account? 1. Inventory.             620              Cost of goods sold.           620      Sales revenue.    960              Accounts receivable.        960   2. Accounts receivable.    960             Sales revenue.                    960     Cost of goods sold.       620             Inventory.                             620   3. Inventory.                       620      Gain.                              340            Sales revenue.                   960   4. Accounts Receivable.   960              Sales revenue.                    620              Gain.                                    340

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 11E: Assume that the business in Exercise 6-9 maintains a perpetual inventory system. Determine the cost...
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1) Using a perpetual inventory system, how should a company record the sale of inventory costing $620 for $960 on account?

1. Inventory.             620

             Cost of goods sold.           620

     Sales revenue.    960

             Accounts receivable.        960

 

2. Accounts receivable.    960

            Sales revenue.                    960

    Cost of goods sold.       620

            Inventory.                             620

 

3. Inventory.                       620

     Gain.                              340

           Sales revenue.                   960

 

4. Accounts Receivable.   960

             Sales revenue.                    620

             Gain.                                    340

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