Kizspy | Question: 46
(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 Sale revenue 400
Dr COGS 640
Cr Inventories 640
B. March 16
Dr Cash 640
Cr Sale revenue 640
Dr COGS 400
Cr Inventories 400
C. March 16
Dr Sale revenue 640
Cr Cash 640
Dr COGS 400
Cr Inventories 400
D. March 16
Dr Sale revenue 640
Cr Cash 640
Dr Inventories 400 Cr COGS 400
E. None of these
