A company that uses the perpetual inventory system sold goods to a customer on account for $ 2,100. The cost of the goods sold was $ 1,050. Which of the following journal entries correctly records this transaction? A) Cost of Goods Sold $2,100 Sales Revenue $2,100B) Merchandise Inventory $2,100 Sales Revenue $2,100C) Accounts Receivable $2,100 Cash $2,100D) Cash $2,100 Sales Revenue $2,100 Cost of Goods Sold $1,050 Merchandise Inventory $1,050

Question

Business

Natalya Atkinson

5 January, 22:54

A company that uses the perpetual inventory system sold goods to a customer on account for $ 2,100. The cost of the goods sold was $ 1,050. Which of the following journal entries correctly records this transaction? A) Cost of Goods Sold $2,100 Sales Revenue $2,100B) Merchandise Inventory $2,100 Sales Revenue $2,100C) Accounts Receivable $2,100 Cash $2,100D) Cash $2,100 Sales Revenue $2,100 Cost of Goods Sold $1,050 Merchandise Inventory $1,050

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Answers (1)

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Siena Pierce · Answer 1

Journal Entry

Explanation:

The Journal entry is shown below:-

1. Accounts receivable Dr, $2,100

To Sales $2,100

(Being sales made on account is recorded)

2. Cost of Goods Sold Dr, $ 1,050

To Merchandise Inventory $1,050

(Being cost of goods sold is recorded)

Therefore option is not available.