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A company sells goods on account at a selling price of $20,000. The cost of the goods is $15,000. Under a perpetual inventory system the
A company sells goods on account at a selling price of $20,000. The cost of the goods is $15,000. Under a perpetual inventory system the journal entries to record the sale will include:
A $20,000 will be debited to Inventory and $20,000 will be credited to Accounts Receivable.
B $20,000 will be debited to Cost of goods sold and $20,000 will be credited to Inventory.
C $20,000 will be debited to Accounts receivable and $20,000 will be credited to Sales.
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