Question

The Corbit Corp, sold merchandise for $10,000 cash. The cost of orp. sold merchandise for $10,000 cash. The cost of the se sold was $7,590. The journal entries to record this transaction under the perpetual inventory system would be:______.

A. Cash 10,000 Merchandise Inventory Cost of Merchandise Sold 10,000 7,590 7,590 Sales
B. Cash 10,000 Sales 10,000 Cost of Merchandise Sold 7,590 7,590 Merchandise Inventory
C. Cash 10,000 Sales 10,000 Merchandise Inventory Cost of Merchandise Sold 10,000 10,000
D. Cash 7,590 Sales 7,590 Cost of Merchandise Sold Merchandise Inventory 7,590 7,590

Answer 1

B. Cash 10,000 Sales 10,000 Cost of Merchandise Sold 7,590 7,590 Merchandise Inventory

Step-by-step explanation:

The journal entry is shown below:

cash $10,000

To sales $10,000

(being cash receipts is recorded)

Here cash is debited as it increased the assets and credited the sales as it also increased the revenue

cost of merchandize sold $7,590

To merchandize inventory $7,590

(being cost of merchandise sold is recorded)

Here cost is debited as it increased the expense and credited the merchanidse inventory as it decreased the inventory