The journal entry made by Canfield to record the sale of the Jefferson Apartments project to King Development Company for $5,250,000 would include:
A)A debit to Sales of $5,250,000.
B)A debit to Cost of Goods Sold of $2,625,000.
C)A credit to Finished Goods Inventory of $975,000.
D)A debit to Finished Goods Inventory of $975,000.

Question

Quizplus · Accepted Answer

The journal entry for the sale would include a debit to Cost of Goods Sold for the cost associated with the sale, which is typically a percentage of the sales price.

The Journal Entry Made by Canfield to Record the Sale