3. Jones Company sold merchandise on account for $90,000. This merchandise cost

Question

3. Jones Company sold merchandise on account for $90,000. This merchandise cost $52,000. The company uses the perpetual method of accounting for inventory. What would be the correct journal entry to record the transaction? A. Accounts Receivable 38,000 Cost of Goods Sold         52,000           Sales 90,000 B. Accounts Receivable 90,000          Sales 90,000 C. Accounts Receivable 90,000          Sales 90,000 Cost of Goods Sold 52,000          Merchandise Inventory 52,000 D. Accounts Receivable 90,000          Merchandise Inventory 52,000          Gain on Sale 38,000 3. Jones Company sold merchandise on account for $90,000. This merchandise cost $52,000. The company uses the perpetual method of accounting for inventory. What would be the correct journal entry to record the transaction? A. Accounts Receivable 38,000 Cost of Goods Sold         52,000           Sales 90,000 B. Accounts Receivable 90,000          Sales 90,000 C. Accounts Receivable 90,000          Sales 90,000 Cost of Goods Sold 52,000          Merchandise Inventory 52,000 D. Accounts Receivable 90,000          Merchandise Inventory 52,000          Gain on Sale 38,000

Explanation / Answer

Correct journal entry :

So answer is c)

Date account & explanation debit credit Account receivable 90000     Sales 90000 Cost of goods sold 52000     Merchandise inventory 52000

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