FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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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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