On June 30,Coral,Inc.finished Job 750 with total job costs of $4000,and transferred the costs to Finished Goods Inventory.On July 6,Coral sold goods to a customer for $5200 cash.Which of the following is the correct journal entry to record the cost of goods sold? Assume the perpetual inventory system is used.

Question

Quizplus · Accepted Answer

The cost of goods sold is recorded by debiting the Cost of Goods Sold account and crediting the Finished Goods Inventory account. Option A is incorrect because it incorrectly debits Finished Goods Inventory. Option B is incorrect because it credits Work-in-Process Inventory, which is not involved in the sale. Similarly, option C is incorrect because it also credits Work-in-Process Inventory, which is not involved in the sale. Therefore, the correct option is D, which correctly debits Cost of Goods Sold and credits Finished Goods Inventory.