Assume that John, a partner, takes inventory from the business for personal use. The inventory has a cost of $200 and a retail sales price of $500. Identify the entry that will be used to record this transaction. Multiple choice question. 

Debit Purchases for $200, debit Gross Profit for $300, and credit Sales for $500 

Debit John, Drawing for $200 and credit Purchases for $200 No entry is required. 

Debit John, Drawing for $500 and credit Purchases for $500 

Debit John, Drawing for $200, debit Purchases for $300, and credit Sales for $500

Answer rating: 100% (QA)

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