A company that uses the perpetual inventory system sold goods to a customer on account on June 14 for $37.80. The company has the following inventory information: June 1 June 10 Beginning Inventory 14 units at $5 each Purchase 16 units at $6 each Sale 5 units June 11 June 14 Sale 6 units The company uses the FIFO method of inventory costing. Which of the following journal entries correctly records the sale on June 14? OA. Cash Sales Revenue Cost of Goods Sold Merchandise Inventory OB. Accounts Receivable Sales Cost of Goods Sold Merchandise Inventory C. Accounts Receivable Sales Cost of Goods Sold Merchandise Inventory Sales Revenue Accounts Receivable Cost of Goods Sold Merchandise Inventory 37.80 81 37.80 36 37.80 27 37.80 81 37.80 81 37.80 36 37.80 27 37.80 81
A company that uses the perpetual inventory system sold goods to a customer on account on June 14 for $37.80. The company has the following inventory information: June 1 June 10 Beginning Inventory 14 units at $5 each Purchase 16 units at $6 each Sale 5 units June 11 June 14 Sale 6 units The company uses the FIFO method of inventory costing. Which of the following journal entries correctly records the sale on June 14? OA. Cash Sales Revenue Cost of Goods Sold Merchandise Inventory OB. Accounts Receivable Sales Cost of Goods Sold Merchandise Inventory C. Accounts Receivable Sales Cost of Goods Sold Merchandise Inventory Sales Revenue Accounts Receivable Cost of Goods Sold Merchandise Inventory 37.80 81 37.80 36 37.80 27 37.80 81 37.80 81 37.80 36 37.80 27 37.80 81
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...
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![A company that uses the perpetual inventory system sold goods to a customer on account on June 14 for $37.80. The company has the following inventory information:
June 1
14 units at $5 each
Beginning Inventory
June 10
Purchase
16 units at $6 each
5 units
June 11
June 14
Sale
Sale
6 units
The company uses the FIFO method of inventory costing. Which of the following journal entries correctly records the sale on June 14?
OA. Cash
Sales Revenue
Cost of Goods Sold
Merchandise Inventory
OB. Accounts Receivable
Sales
Cost of Goods Sold
Merchandise Inventory
C. Accounts Receivable
Sales
Cost of Goods Sold
Merchandise Inventory
Sales Revenue
Accounts Receivable
Cost of Goods Sold
Merchandise Inventory
37.80
81
37.80
36
37.80
27
37.80
81
37.80
81
37.80
36
37.80
27
37.80
81](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2F4f726077-d500-4a84-83db-4e4532ecd243%2F6b1nsjd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company that uses the perpetual inventory system sold goods to a customer on account on June 14 for $37.80. The company has the following inventory information:
June 1
14 units at $5 each
Beginning Inventory
June 10
Purchase
16 units at $6 each
5 units
June 11
June 14
Sale
Sale
6 units
The company uses the FIFO method of inventory costing. Which of the following journal entries correctly records the sale on June 14?
OA. Cash
Sales Revenue
Cost of Goods Sold
Merchandise Inventory
OB. Accounts Receivable
Sales
Cost of Goods Sold
Merchandise Inventory
C. Accounts Receivable
Sales
Cost of Goods Sold
Merchandise Inventory
Sales Revenue
Accounts Receivable
Cost of Goods Sold
Merchandise Inventory
37.80
81
37.80
36
37.80
27
37.80
81
37.80
81
37.80
36
37.80
27
37.80
81
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