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Embark Produces Mulch for Landscaping Use

Question 119

Multiple Choice

Embark produces mulch for landscaping use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:

A) Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.
B) Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000.
C) Debit Cost of Goods Sold $444,000; credit Sales $444,000.
D) Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000.
E) Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.

Correct Answer: