QUESTION 3 Cumberland Co. sells $2,000 of inventory to Hancock Co. for cash. Cumberland paid $1,250 for the merchandise. Under a perpetual inventory system, which of the following journal entry(ies) would be recorded? O a. debit Cash, $2,000; credit Sales, $2,000; and debit Cost of Goods Sold, $1,250; credit Inventory, $1,250 O b. debit Cash, $2,000; credit Inventory, $1,250 O c. debit Cash, $1,250; credit Sales, $1,250 O d. debit Accounts Receivable, $2,000; credit Sales, $2,000; and debit Cost of Goods Sold, $1,250; credit Inventory, $1,250
QUESTION 3 Cumberland Co. sells $2,000 of inventory to Hancock Co. for cash. Cumberland paid $1,250 for the merchandise. Under a perpetual inventory system, which of the following journal entry(ies) would be recorded? O a. debit Cash, $2,000; credit Sales, $2,000; and debit Cost of Goods Sold, $1,250; credit Inventory, $1,250 O b. debit Cash, $2,000; credit Inventory, $1,250 O c. debit Cash, $1,250; credit Sales, $1,250 O d. debit Accounts Receivable, $2,000; credit Sales, $2,000; and debit Cost of Goods Sold, $1,250; credit Inventory, $1,250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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question 3 please
![QUESTION 3
Cumberland Co. sells $2,000 of inventory to Hancock Co. for cash. Cumberland paid $1,250 for the merchandise.
Under a perpetual inventory system, which of the following journal entry(ies) would be recorded?
O a. debit Cash, $2,000; credit Sales, $2,000; and debit Cost of Goods Sold, $1,250; credit Inventory, $1,250
b. debit Cash, $2,000; credit Inventory, $1,250
c. debit Cash, $1,250; credit Sales, $1,250
d. debit Accounts Receivable, $2,000; credit Sales, $2,000; and debit Cost of Goods Sold, $1,250; credit
Inventory, $1,250
QUESTION 4
Gross profit is equal to
a. sales less cost of goods sold
b. sales less selling expenses
c. sales plus selling expenses
d. sales plus cost of goods sold
QUESTION 5
When merchandise purchased on account is returned under the perpetual inventory system, the buyer would debit
a. Accounts Receivable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd90aeefa-63e1-47a2-9702-1e4b0f94b93f%2F68d53de7-8f93-413a-b83e-f6e704e49c56%2Ffhhxt9h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 3
Cumberland Co. sells $2,000 of inventory to Hancock Co. for cash. Cumberland paid $1,250 for the merchandise.
Under a perpetual inventory system, which of the following journal entry(ies) would be recorded?
O a. debit Cash, $2,000; credit Sales, $2,000; and debit Cost of Goods Sold, $1,250; credit Inventory, $1,250
b. debit Cash, $2,000; credit Inventory, $1,250
c. debit Cash, $1,250; credit Sales, $1,250
d. debit Accounts Receivable, $2,000; credit Sales, $2,000; and debit Cost of Goods Sold, $1,250; credit
Inventory, $1,250
QUESTION 4
Gross profit is equal to
a. sales less cost of goods sold
b. sales less selling expenses
c. sales plus selling expenses
d. sales plus cost of goods sold
QUESTION 5
When merchandise purchased on account is returned under the perpetual inventory system, the buyer would debit
a. Accounts Receivable
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