Rogers Company sold merchandise worth $1,600 on credit,terms n/15.The merchandise sold had cost $1,100.What is the required journal entry to record the transaction and to transfer the cost of merchandise inventory to cost of goods sold under the periodic inventory system?
A) Accounts Receivables 1,600
Sales 1,600
No entry for transfer to cost of goods sold.
B) Sales 1,600
Accounts Receivables 1,600
Merchandise Inventory 1,100
Cost of Goods Sold 1,100
C) Accounts Receivables 1,600
Merchandise Inventory 1,600
Cost of Goods Sold 1,100
Merchandize Inventory 1,100
D) Merchandise Inventory 1,600
Sales 1,600
No entry for transfer to cost of goods sold.

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the cost of goods sold is not recorded at the time of sale. Therefore, only the sales transaction is recorded, and no entry is made to transfer the cost of merchandise inventory to cost of goods sold.

Rogers Company Sold Merchandise Worth $1,600 on Credit,terms N/15