Lindsey Corporation had the following account balances: Sales revenue $200,000 Beginning inventory 40,000 Purchases 80,000 Purchase discounts 3,000 Freight-in 1,000 Ending inventory 30,000 Purchases returns and allowances 2,000 With the perpetual inventory system, which of the following entries would be made when inventory costing $3,600 is sold for $5,000? a. Cost of goods sold 3,600 Inventory 3,600 b. Inventory 5,000 Accounts payable 5,000 c. Inventory 3,600 Cost of goods sold 5,000 Accounts payable 3,600 Purchases 5,000 d. Purchases 5,000
Lindsey Corporation had the following account balances: Sales revenue $200,000 Beginning inventory 40,000 Purchases 80,000 Purchase discounts 3,000 Freight-in 1,000 Ending inventory 30,000 Purchases returns and allowances 2,000 With the perpetual inventory system, which of the following entries would be made when inventory costing $3,600 is sold for $5,000? a. Cost of goods sold 3,600 Inventory 3,600 b. Inventory 5,000 Accounts payable 5,000 c. Inventory 3,600 Cost of goods sold 5,000 Accounts payable 3,600 Purchases 5,000 d. Purchases 5,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Lindsey Corporation had the following account balances:
Sales revenue $200,000
Beginning inventory 40,000
Purchases 80,000
Purchase discounts 3,000
Freight-in 1,000
Ending inventory 30,000
Purchases returns and allowances 2,000
With the perpetual inventory system, which of the following entries would be made when inventory costing $3,600 is sold for $5,000?
a. Cost of goods sold 3,600
Inventory 3,600
b. Inventory 5,000
Accounts payable 5,000
c. Inventory 3,600
Cost of goods sold 5,000
Accounts payable 3,600
Purchases 5,000
d. Purchases 5,000
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