The ACCT 201 Co. sold merchandise inventory on account to WCC Co. for $2,000; terms 1/10,...
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The ACCT 201 Co. sold merchandise inventory on account to WCC Co. for $2,000; terms 1/10, net 30; free on board shipping point. The cost of the merchandise sold was $1,500. Which of the following entries correctly record the transaction for ACCT 201? The company uses the NET method to record sales discounts and a perpetual inventory system. A. Dr. Accounts Receivable $1,980; Cr. Sales $1,980 Dr. Cost of Merchandise Sold $1,500; Cr. Merchandise Inventory $1,500 B. Dr. Accounts Receivable $2,000; Cr. Sales $1,980; Cr. Discounts $20 C. Dr. Accounts Receivable $2,020; Cr. Sales $2,020 Dr. Cost of Merchandise Sold $1,520; Cr. Merchandise Inventory $$1,520 D. Dr. Accounts Payable $1,500; Cr. Sales $1,500 E. None of the above entries are correct The ACCT 201 Co. sold merchandise inventory on account to WCC Co. for $2,000; terms 1/10, net 30; free on board shipping point. The cost of the merchandise sold was $1,500. Which of the following entries correctly record the transaction for ACCT 201? The company uses the NET method to record sales discounts and a perpetual inventory system. A. Dr. Accounts Receivable $1,980; Cr. Sales $1,980 Dr. Cost of Merchandise Sold $1,500; Cr. Merchandise Inventory $1,500 B. Dr. Accounts Receivable $2,000; Cr. Sales $1,980; Cr. Discounts $20 C. Dr. Accounts Receivable $2,020; Cr. Sales $2,020 Dr. Cost of Merchandise Sold $1,520; Cr. Merchandise Inventory $$1,520 D. Dr. Accounts Payable $1,500; Cr. Sales $1,500 E. None of the above entries are correct
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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