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On June 30,Caroline,Inc

Question 138

Multiple Choice

On June 30,Caroline,Inc.finished Job 750 with total job costs of $4400 and transferred the costs to Finished Goods Inventory.On July 6,Caroline sold goods from Job 750 to a customer for $6000 cash.Which of the following is the correct entry needed to record the revenue earned? Assume the perpetual inventory system is used.


A) debit Finished Goods Inventory $4400 and credit Sales Revenue $4400
B) debit Cash $6000 and credit Sales Revenue $6000
C) debit Sales Revenue $6000 and credit Cash $6000
D) debit Cost of Goods Sold $4400 and credit Sales Revenue $4400

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