Wyman Corporation uses a process costing system. The company manufactured certai

Question

Wyman Corporation uses a process costing system. The company manufactured certain goods at a cost of $910 and sold them on credit to Percy Corporation for $1,295. The complete journal entry to be made by Wyman at the time of this sale is:

A. Debit Accounts Receivable $1,295; credit Sales $1,295; debit Cost of Goods Sold $910; credit Finished Goods Inventory $910.

B. Debit Accounts Receivable $1,295; credit Sales $385; credit Finished Goods Inventory $910.

C. Debit Cost of Goods Sold $1,295; credit Sales $1,295.

D. Debit Finished Goods Inventory $910; debit Sales $1,295; credit Accounts Receivable $1,295; credit Cost of Goods Sold $910.

E. Debit Accounts Receivable $1,295; debit Selling expense $910; credit Sales $1,295; credit Cost of Goods Sold $910.

PLEASE SPECIFY WHICH LETTER IS CORRECT AND PLEASE ADD EXPLANATION

Explanation / Answer

A. Debit Accounts Receivable $1,295; credit Sales $1,295; debit Cost of Goods Sold $910; credit Finished Goods Inventory $910 - is correct

Cost of Goods Sold Debit $910
Finished Goods Inventory Credit $910
(Finished goods inventory transferred to cost of goods sold)

Accounts Receivable Debit   $1,295
Sales Credit $1,295
(Sales made on credit)

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.