1. Wilshire Equipment Company sold merchandise on credit.No discounts were offered. The proper journal entry to record this sale would be:

Debit Accounts Receivable, and Credit Purchases (or inventory)

Debit Cash, and Credit Accounts Receivable.

Debit Sales, and Credit Accounts Receivable.

Debit Accounts Receivable and Credit Sales

None of these.

2. Sperry Company had a beginning inventory of $80,000, purchased merchandise during the period for $140,000, and had ending inventory of $95,000. How much was goods available for sale?

$155,000

$175,000

$125,000

$220,000