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On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anderson, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system and the gross method. The journal entry or entries that Shilling will make on May 1 is (are): Multiple Choice Account Title Debit Credit Sales 5,800 Accounts receivable 5,800 Account Title Debit Credit Accounts Receivable 5,800 Sales 5,800 Account Title Debit Credit Sales 5,800 Accounts Receivable 5,800 Cost of Goods sold 4,000 Merchandise Inventory 4,000

On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anderson, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system and the gross method. The journal entry or entries that Shilling will make on May 1 is (are): Multiple Choice Account Title Debit Credit Sales 5,800 Accounts receivable 5,800 Account Title Debit Credit Accounts Receivable 5,800 Sales 5,800 Account Title Debit Credit Sales 5,800 Accounts Receivable 5,800 Cost of Goods sold 4,000 Merchandise Inventory 4,000

FINANCIAL ACCOUNTING
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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On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anderson, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system and the gross method. The journal entry or entries that Shilling will make on May 1 is (are): Multiple Choice Account Title Debit Credit Sales 5,800 Accounts receivable 5,800 Account Title Debit Credit Accounts Receivable 5,800 Sales 5,800 Account Title Debit Credit Sales 5,800 Accounts Receivable 5,800 Cost of Goods sold 4,000 Merchandise Inventory 4,000
Transcribed Image Text:On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anderson, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system and the gross method. The journal entry or entries that Shilling will make on May 1 is (are): Multiple Choice Account Title Debit Credit Sales 5,800 Accounts receivable 5,800 Account Title Debit Credit Accounts Receivable 5,800 Sales 5,800 Account Title Debit Credit Sales 5,800 Accounts Receivable 5,800 Cost of Goods sold 4,000 Merchandise Inventory 4,000
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