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FOR THE FOLLOWING 3 QUESTIONS, USE THIS INFORMATION: Washington Warehouse is a small retail business that specializes in the sale of top-of-the- line televisions. This
FOR THE FOLLOWING 3 QUESTIONS, USE THIS INFORMATION: Washington Warehouse is a small retail business that specializes in the sale of top-of-the- line televisions. This year, the store has begun to carry the Flat TV manufactured by Bass Co. Thus far, Washington has recorded the following transactions involving the Flat TV: Jan. 5 Purchased 8 Flat TVs at a unit cost of $1,400 Jan. 18 Purchased 5 additional Flat TVs at $1,400 each Feb. 12 Sold 9 Flat TVs to the Duke Hotel for $15,300 43. Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the purchase on January 18th would include which of the following? A. A debit to the Purchases account for 57,000. B. A debit to the Cost of Goods Sold for $7,000. C. A credit to Inventory for $7,000. D. A debit to Inventory for $7,000. 44. Refer to the information above. The gross profit on the Flat TVs as of February 12 is: A $11,200. B. $2,700. C. $4,100. D. $15,300. 45. Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the sale on February 12th would include all of the following except: A. A debit to the Cost of Goods Sold for $15,300. B. A credit to Sales Revenue for $15,300. C. A credit to Purchases for $15,300. D. A credit to Inventory for $15,300
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