Author Question: In recording the cost of merchandise sold for cash, based on data available from perpetual inventory ... (Read 73 times)

cagreen833 · **on:** Jul 5, 2018

In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is
a. debit Cost of Merchandise Sold; credit Sales
b. debit Cost of Merchandise Sold; credit Merchandise Inventory
c. debit Merchandise Inventory; credit Cost of Merchandise Sold
d. debit Accounts Receivable; credit Merchandise Inventory

Question 2

On May 31, Team Shirts pays a 600 dividend to its shareholders. The dividend ________.

A) increases assets by 600
B) reduces retained earnings by 600
C) is classified as dividend expense of 600
D) increases net income by 600