On June 30,Coral Inc.finished Job 750 with total job costs of $4,600,and transferred the costs to Finished Goods Inventory.On July 6,it completed the sale of the goods to a customer for $5,100 cash.In order to record the sale,two entries are necessary-one to record revenue and one to record cost of goods sold.Which of the following is the correct journal entry to record the cost of goods sold?

Question

Quizplus · Accepted Answer

When goods are sold, the cost of goods sold is debited and the finished goods inventory is credited for the same amount. Therefore, the correct journal entry to record the cost of goods sold in this scenario is to debit Cost of Goods Sold for $4,600 and credit Finished Goods Inventory for $4,600. Option D is the correct choice.