Answered: $2,100; Inventory, $700 $2,100; Cost of…

Business

Accounting

$2,100; Inventory, $700 $2,100; Cost of Goods Sold, $1,400 $2,100; Cost of Goods Sold, $700

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

A company purchased inventory for

$1,400

per unit. The company later sold one unit of the inventory for cash of

$2,100.

Under the perpetual inventory system, which accounts will be debited to record the sale?

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Cumberland Co. sells $919 of inventory to Hancock Co. for cash. Cumberland paid $673 for the merchandise. Under a perpetual inventory system, which of the following journal entry(ies) would be recorded?
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