Homework Answers
The answer is Option d. Debit to Cost of Goods Sold (COGS) and a
credit to Merchandise Inventory for $213.
Option a. and b. are incorrect because sales account should be
credited and accounts receivables debited since the merchandise is
sold on account.
Option c. is incorrect since the COGS Account should be debited
being an expense account (applying the Golden Accounting Rules for
Nominal Accounts) and Inventory being a real account in nature,
should be credited because it is going out, ie, sold.
Hence, the correct answer is Option d.
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16-20 Weston Jewellers uses the perpetual inventory system. On April 2. Weston sold merchandise with a...
16-20
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