Question

somente trabook your desirecorded Tot Mar 31,2030 7:10:57 A ctos A -9700 Question 7 View Policies Current Attempt in Progress In a perpetual system assuming the company uses the earnings approach for revenue recognition the required entries to record the sale of merchandise for $1070 on creat for goods casting the company $650 would include aladebit to Cost of Goods Sold and credit to Merchandise Inventory for $650 bladebit to Accounts Receivable and credit to Merchandise Inventory for $1070 dadebit to Accounts Receivable and credit to Sales for 51070 d) both a) and Sve for Later A n tent to Gradebook your des being recorded Tue Mar 11.2020.7.10:57PM America Los Angeles-0700 How to completo How to complete. A How to complete por 8 How to complete..pot Rtg WASAL DELL

Answer 1

Correct answers is option:

(d) Both a) and c)

Summary/Explanation:

In Perpetual Inventory system, whwever we make any sale transaction, we record the same on followings basis:

Eg.: We make a sale of $1070 of the goods whose cost was $650 so following journal entry shall be passed in perpetual inventory system:

1) Cost of Goods Sold A/c debit by $650 and credit merchandise inventory by $650

2) Debit account receivable by $1070 and credit s