OD
(Choose 1 answer)
(2021)A company that uses a perpetual inventory system made the following cash purchases and sales:
Jan, 1: Purchased 100 units at $10 per unit.
Feb, 5: Purchased 60 units at $12 per unit.
March, 16: Sold 40 units for $16 per unit.
Prepare general journal entries to record the March 16 sale assuming a cash sale and the FIFO method is used.
A. March 16
Dr Cash 400
Cr Cr Sale revenue COGS 640 Inventories Dr 640
B. March 16
Dr Cash 640
Cr Sale revenue 640 Dr
COGS 400 Inventories 400 Cr
C. March 16
Dr Sale revenue 640
Cr Cash 640 COGS 400 Dr
Cr Inventories 400
D. March 16
Dr Sale revenue 640
Cr Cash Inventories 640 400 Dr
Cr COGS 400
E. None of these
400
Exit 24
