please show your work, thanks. QUESTION 7 The Corbit Corp. sold merchandise $10,

Question

please show your work, thanks.

QUESTION 7 The Corbit Corp. sold merchandise $10,000 for cash. The cost of the merchandise sold was $7,590. The journal entry(s) to record this transaction would be O Cash 10,000 Merchandise Inventory 10,000 Cost of Merchandise Sold 7,590 Sales 7,590 ? Cash 10,000 Sales 10,000 Cost of Merchandise Sold ry Merchandise Invento 7,590 O Cash 10,000 Sales 10,000 Cost of Merchandise Sold ry 10,000 Merchandise Invento 10,000 O Cash 7,590 Sales 7,590 Cost of Merchandise Sold 7,590 Merchandise Inventory 7,590

Explanation / Answer

Option B is correct.

Journal Entry in the books of Corbit Corp. will be:

Cash A/c Dr.    $ 10,000

To Sales    $10,000

(Being Sales made for cash)

Cost of Merchandise Sold    Dr.    $7,590

To Merchandise Inventory    $7,590

(Being Inventory reduced with the cost amount)

The difference thereof will be Profit or Loss.

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