Using a job order costing system,Jabari Company sold jobs on account with a selling price of $985,000 and a cost of $410,000.Assume the company uses the perpetual inventory system.The journal entries required to record this transaction are:

Question

Quizplus · Accepted Answer

The journal entries required would be to debit Accounts Receivable for $985,000 and credit Sales Revenue for the same amount, and to debit Cost of Goods Sold for $410,000 and credit Inventory for the same amount. Option C correctly reflects these entries.

Using a Job Order Costing System,Jabari Company Sold Jobs on Account