Que Corporation uses a process cost accounting system. The company manufactured certain goods at a cost of $800 and sold them on credit to Are Corporation for $1,075. The complete journal entry to be made by Que at the time of this sale is: A. Accounts Receivable-Are Corporation 1,075 Cost of Goods Sold 800 Sales 1,075Finished Goods Inventory 800B. Accounts Receivable-Are Corporation 1,075 Finished Goods Inventory 800Sales 275C. Cost of Goods Sold 1,075 Sales 1,075D. Finished Goods Inventory 800 Sales 1,075 Accounts Receivable-Are Corporation 1,075Cost of Goods Sold 800E. Accounts Receivable-Are Corporation 1,075 Selling expense 800 Sales 1,075Cost of Goods Sold 800

Question

Jonathon Schultz

Business

13 October, 02:40

Que Corporation uses a process cost accounting system. The company manufactured certain goods at a cost of $800 and sold them on credit to Are Corporation for $1,075. The complete journal entry to be made by Que at the time of this sale is: A. Accounts Receivable-Are Corporation 1,075 Cost of Goods Sold 800 Sales 1,075Finished Goods Inventory 800B. Accounts Receivable-Are Corporation 1,075 Finished Goods Inventory 800Sales 275C. Cost of Goods Sold 1,075 Sales 1,075D. Finished Goods Inventory 800 Sales 1,075 Accounts Receivable-Are Corporation 1,075Cost of Goods Sold 800E. Accounts Receivable-Are Corporation 1,075 Selling expense 800 Sales 1,075Cost of Goods Sold 800

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Russell Larsen · Answer 1

A. Accounts Receivable-Are Corporation 1,075

Cost of Goods Sold 800

Sales 1,075

Finished Goods Inventory 800

Explanation:

The account represent the right to claim the billed ammount to Are Corporation. It is an asset, which increase from debit

COGS are 800 those are expenses, it decrease the owner equity, it goes into debit.

The sales are revenue, this increase the owner equity, it goes into credit.

The inventory decrease, those goods were used and no longer in the company, the accounting must write them off