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25 December, 03:05

Morgan Manufacturing recently sold goods that cost $35,000 for $45,000 cash. The journal entries to record this transaction would include:

A. a credit to Work-in-Process Inventory for $35,000.

B. a debit to Sales Revenue for $45,000.

C. a credit to Profit on Sale for $10,000.

D. a debit to Finished-Goods Inventory for $35,000.

E. a credit to Sales Revenue for $45,000.

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  1. 25 December, 03:17
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    The journal entries to record this transaction would include: E. a credit to Sales Revenue for $45,000.

    Explanation:

    When Morgan Manufacturing sold goods, the company should make two journal entry to record Cost of goods sold and Sales revenue.

    The entries:

    1. Debit Cost of goods sold $35,000

    Credit Finished-Goods Inventory $35,000

    2. Debit Cash $45,000

    Credit Sales revenue $45,000

    The journal entries to record this transaction would include: E. a credit to Sales Revenue for $45,000.
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