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

Question

Nielsen

Business

10 October, 04:30

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

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Noble · Answer 1

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