On October 4, 2018, JT Corporation had credit sales transactions of $4,000 from merchandise having cost $2,400. The entries to record the day's credit transactions include a

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The entry to record credit sales includes a credit to Sales Revenue for the amount of sales ($4,000 in this case). There is no need to debit Inventory for credit sales since the merchandise sold is no longer owned by the company. Also, the cost of goods sold is recorded at the end of the accounting period, based on the cost of the merchandise sold, not at the time of the credit sale. Therefore, choice B is the best option.

On October 4, 2018, JT Corporation Had Credit Sales Transactions