Which of the following alternatives represents the correct amount that must be recorded as credit sales in the branch inventory account ?

A. 57 600 (Cr)

B. 57 600 (Dr)

C. 71 600 (Cr)

D. 71 600 (Dr)

QUESTION 5

Which one of the following alternatives is correct?

A. Where inventory to the branch is invoiced at cost price, the settlement discount granted to branch debtors must be recorded on the debit side of the branch inventory account.

B. Where inventory to the branch is invoiced at cost price, the gross profit of the branch must be recorded on the debit side of the branch adjustment account.

C. Where inventory to the branch is invoiced at selling price, petty cash stolen at the branch must be recorded on the credit side of the branch inventory account

D. Where inventory to the branch is invoiced at cost price, a mark down of inventory below the cost price must be recorded on the credit side of the branch inventory account.