Dog1937
Nov 4, 2013, 07:31 AM
Have a question about the following...
Annie's Fitness sells a set of free weights to a customer for which Annie's had paid $750. Which one of the following statements describes the most appropriate accounting for the transaction?
A.Debit cost of goods sold expense $750; credit cash $750
B.Debit inventory $750; credit cost of goods sold expense $750
C.Debit cost of goods sold expense $750; credit inventory $750
D.Debit inventory $750; credit accounts payable $750
I believe the answer is C. Am I headed in the right direction?
Thanks
Annie's Fitness sells a set of free weights to a customer for which Annie's had paid $750. Which one of the following statements describes the most appropriate accounting for the transaction?
A.Debit cost of goods sold expense $750; credit cash $750
B.Debit inventory $750; credit cost of goods sold expense $750
C.Debit cost of goods sold expense $750; credit inventory $750
D.Debit inventory $750; credit accounts payable $750
I believe the answer is C. Am I headed in the right direction?
Thanks