A client wants to donate five widgets (set up as inventory items) to a charity. In the
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Question:
A client wants to donate five widgets (set up as inventory items) to a charity. In the item setup, the cost is $5 and the sales price is $10. Fifty widgets were originally purchased at $6 per widget.
What is the effect on the General Ledger when this is recorded on a Sales Receipt?
- A) Debit COGS $30; credit inventory $30
- B) Debit COGS $30; credit inventory $30; debit bank account $50; credit income $50
- C) Debit COGS $25; credit inventory $25; debit Bank account funds $50; credit income $50
- D) Debit COGS $25; credit inventory $25
- E) Debit Donations $30; credit inventory $30
Related Book For
Statistics For Business And Economics
ISBN: 9780538481649
11th Edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams
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