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Home > Business & Careers > Accounting   »   Peretual Inventory

 
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Old Oct 23, 2007, 09:23 AM
pas2cc
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Peretual Inventory

17. On July 10, 2002, Fins and Feathers Pet Shop purchased 100 bags of Koi Chow at $10 each from Far East Distributing Company. On July 11, Fins and Feathers sold 60 bags at $15 each. Fins and Feathers uses a perpetual inventory system. Related to the sale of the 60 bags, the company should recognize, respectively, increases of ___ in sales revenue and in ___ cost of goods sold.
a. $0 and $900
b. $900 and $600
c. $900 and $1,000
d. $1,000 and $600
e. $1,500 and $600

I chose b. Just wanted to see if I did it correctly and maybe if you have a more structured way of diing it.

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