On October 1,Robertson Company sold inventory in the amount of $5,800 to Alberta,Inc.with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Robertson uses a periodic inventory system.The journal entry (or entries)prepared by Robertson on October 1 is(are):
A)Debit Sales Revenue and credit Accounts Receivable for $5,800.
B)Debit Sales Revenue and credit Accounts Receivable for $5,800;debit Cost of Goods Sold and credit Inventory for $4,000.
C)Debit Accounts Receivable and credit Sales Revenue for $5,800.
D)Debit Accounts Receivable and credit Sales Revenue for $5,800;Debit Cost of Goods Sold and credit Inventory for $4,000.

Question

Quizplus · Accepted Answer

When a periodic inventory system is in use,the entry to record a sale includes a debit to Accounts Receivable and a credit to Sales Revenue.Unlike a perpetual inventory system,a periodic system does not track the cost of goods sold during the accounting period.

On October 1,Robertson Company Sold Inventory in the Amount of $5,800