Asked by

Lorinda Dayon
on Dec 17, 2024

verifed

Verified

Mack Industries uses the periodic inventory system. What is the entry to record a $300 sale on account to customer Jake Sanders, with a $100 cost of sale?

A) Debit Accounts Receivable for $300; credit Sales for $300; debit Cost of Goods Sold for $100; credit Merchandise Inventory for $100.
B) Debit Accounts Receivable for $300; credit Sales for $100; debit Cost of Goods Sold for $300; credit Merchandise Inventory for $100.
C) Debit Sales for $300; credit Accounts Receivable for $300.
D) Debit Accounts Receivable for $300; credit Sales for $300.

Periodic Inventory System

A method of tracking inventory where physical counts are conducted at certain intervals to determine the level of inventory and the cost of goods sold.

Cost of Sale

The direct costs attributed to the production of the goods sold by a company.

Merchandise Inventory

Goods that a company has in stock and available for sale, listed as an asset on the balance sheet.

  • Comprehend the recording of sales, including the cost of goods sold, under both periodic and perpetual inventory systems.
  • Detect the dissimilarities in the process of documenting inventory transactions within perpetual and periodic inventory systems.
verifed

Verified Answer

AB
Alexandria BaggsDec 18, 2024
Final Answer:
Get Full Answer