Question
32. BetterBuy uses a perpetual inventory system. BetterBuy sells a computer from inventory for $599 on credit. BetterBuy originally bought the computer from IBM for
32. BetterBuy uses a perpetual inventory system. BetterBuy sells a computer from inventory for $599 on credit. BetterBuy originally bought the computer from IBM for $395. What journal entry (entries) will BetterBuy prepare to record the sale?
A) Debit Cash and credit Sales Revenue for $599; debit Cost of Goods Sold and credit Inventory for $395
B) Debit Accounts Receivable for $599, credit Inventory for $395, and credit Gross Profit for $204
C) Debit Accounts Receivable and credit Sales Revenue for $599; debit Cost of Goods Sold and credit Inventory for $395
D) Debit Inventory for $395, debit Cost of Goods Sold for $204, and credit Accounts Receivable for $599
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started