Question

Selling inventory costing $93,000 for a selling price of $111,000 to customers on account (to be received at a later date) would require which of the following as part of the journal entry?

A. Credit to Gain on Sale for $18,000
B. Debit to Cash for $111,000
C. Debit to Inventory for $93,000
D. Debit to COGS for $93,000

Answer 1

D. Debit to COGS for $93,000

Step-by-step explanation:

The following two journal entries are to be recorded in the accounts on the sale of inventory.

Debit Credit

Revenue $111,000

Accounts receivable $111,000

Cost of Goods sold $93,000

Inventory $93,000

So based on the above discussion, the answer is D. Debit to COGS for $93,000