Ace Bonding Company purchased merchandise inventory on account. The inventory costs $4,000 and is expected to sell for $7000 Howshould Ace record the purchase?Multiple ChoiceInventoryAccounts payableCost of goods soldProfitSales payableCost of goods sold4,000 Accounts payable| 4,000Cost of goods sold4,000Profit3,000Sales payable7,000Cost of goods soldDeferred sales revenue4,0003,000Sales in advance7,000Cost of goods sold4,000Inventory payable4, 000

Ace Bonding Company purchased merchandise inventory on account. The inventory costs $4,000 and is expected to sell for $7000. How should Ace record the purchase? Muitiple CholcE nventory Accounts payable cost of goods sold Profit Sales payable Cost of aoods sold 14,0001

Ace Bonding Company purchased merchandise inventory on account. The inventory costs $4,000 and is expected to sell for $7000. How should Ace record the purchase? Muitiple CholcE nventory Accounts payable cost of goods sold Profit Sales payable Cost of aoods sold 14,0001

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Ace Bonding Company purchased merchandise inventory on account. The inventory costs $4,000 and is expected to sell for $7000 How
should Ace record the purchase?
Multiple Choice
Inventory
Accounts payable
Cost of goods sold
Profit
Sales payable
Cost of goods sold
4,000

Accounts payable
| 4,000
Cost of goods sold
4,000
Profit
3,000
Sales payable
7,000
Cost of goods sold
Deferred sales revenue
4,000
3,000
Sales in advance
7,000
Cost of goods sold
4,000
Inventory payable
4, 000

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