Ask Question
BusinessBusiness
20 August, 00:31

Cumberland Co. sells $2,000 of inventory to Hancock Co. for cash. Cumberland paid $1,250 for the merchandise. Under a perpetual inventory system, which of the following journal entry (ies) would be recorded?

+1
Answers (1)
  1. 20 August, 03:40
    0
    Cash (Debit) $2,000

    Sales (Credit) $2,000

    Cost of Merchandise Sold (Debit) $1,250

    Merchandise Inventory (Credit) $1,250

    Explanation:

    Cash (Debit) : Cash increase because it is a Cash Sale, cash increases by debit.

    Sales (Credit) : to register the sale, Sales (income) increases by credit.

    Cost of Merchandise Sold (Debit) : to record the cost of the merchandise sold, the costs increase by debit.

    Merchandise Inventory (Credit) : to record the inventory output of the merchandise sold, inventory decreases by credit.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Cumberland Co. sells $2,000 of inventory to Hancock Co. for cash. Cumberland paid $1,250 for the merchandise. Under a perpetual inventory ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is most similar to the act of buying a bond? O A. Buying a share of stock. O B. Giving a loan. O C. Paying taxes. O D. Exchanging currency.
Answers (1)
What is the value in year 7 of a 2700 cash flow made in year 8?
Answers (1)
At its current output level, Pretty Flowers Florist has average fixed costs equal to $5.40 and average variable costs equal to $3.20. What is Pretty Flowers Florist's average total cost at their current output level? A. $3.20 B. $7.30 C. $5.40 D. $8.
Answers (2)
Cola Inc. and Soda Co. are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices.
Answers (1)
A new product task team met for the first time. Tony, the team leader, was particularly stressed that day from work and home issues, and he answered questions gruffly.
Answers (1)
New Questions in Business
Having a video that skips or looks grainy is an example of O A. not enough media O B. too much media O C. bad media O D. irrelevant media
Answers (2)
15. Physical counts of inventory: A) Are not necessary under the perpetual system. B) Are necessary to adjust the Inventory account to the actual inventory available. C) Must be taken at least once a month.
Answers (2)
What role does specialization play in the productivity of an economy
Answers (1)
What step must be taken before investigators can determine if data tampering has occurred?
Answers (1)
If a manager uses a free-rein leadership style, then he/she would more than likely provide the workers tools needed in order to make decisions and progress toward the goal. This is called A. equality. B. enabling. C. effectiveness. D. efficiencies.
Answers (2)
Home » Business » Cumberland Co. sells $2,000 of inventory to Hancock Co. for cash. Cumberland paid $1,250 for the merchandise. Under a perpetual inventory system, which of the following journal entry (ies) would be recorded?
Sign Up Forgot Password?