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Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of merchandise, costing $810, and sold on account for $1,340? Multiple
Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of merchandise, costing $810, and sold on account for $1,340?
Multiple Choice
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Inventory 810 Accounts receivable 810 Sales 1,340 Revenue from sales 1,340 -
Accounts receivable 1,340 Sales revenue 1,340 Cost of goods sold 810 Inventory 810 -
Inventory 810 Gain on sale 530 Sales revenue 1,340 -
Accounts receivable 1,340 Sales revenue 810 Gain on sale 530
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