38. Under a perpetual inventory system, acquisition of merchandise for resale is debited to the

Select one:

a. Inventory account

b. Purchases account

c. Accounts Receivable account

d. Cost of Goods Sold account

39. Floor Covering Inc. maintains inventory records using a perpetual costing system and a FIFO cost flow assumption. Data for June 2018, is as follows: June 1 Balance 90 units at $10 June 10 Purchase 110 units at $12 June 15 Sale 120 units at $20 June 17 Purchase 130 units at $13 June 27 Sale 100 units at $20 The journal entry for the sale on June 27 will include a:

Select one:

a. debit to Cost of Goods Sold for $1,220

b. debit to Cost of Goods Sold for $1,300

c. debit to Inventory for $1,400

d. Credit to Cost of Goods Sold for $1,300