Sunset,Inc.purchased merchandise from Rumble Music Company on June 5,2014.The goods were shipped the same day.The merchandise's selling price was $15,000.The credit terms were 1/10,n/30.The shipping terms were FOB shipping point.Sunset received the merchandise on June 10,2014.Sunset paid the amount due on June 13,2014. Sunset uses a perpetual inventory system.When will the cost of merchandise sold be recorded as an expense?
A) The date the merchandise was purchased.
B) The date the merchandise is sold.
C) The end of the accounting period
D) Cannot be determined without further information.
Correct Answer:
Verified
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