Mountain Day Spa sold merchandise inventory on credit, terms n/30, to Marvin Smith, $400. Cost of goods

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Mountain Day Spa sold merchandise inventory on credit, terms n/30, to Marvin Smith, $400. Cost of goods sold was $250. When using a manual accounting information system, where should Mountain record this transaction, and what is the appropriate column in which to record the $250?

a. Sales journal; Accounts Receivable DR, Sales Revenue CR

b. Cash receipts journal; Cash DR, Sales Revenue CR

c. Sales journal; Cost of Goods Sold DR, Merchandise Inventory CR

d. Cash receipts journal; Cash DR, Accounts Receivable CR

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Horngrens Financial And Managerial Accounting The Managerial Chapters

ISBN: 9781292412337

7th Global Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

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