1) Table 7-6
Provincewide Milling Company uses a sales journal. On June 2, the sales journal
appears as you see below.
Sales Journal
Other sales that took place in June are as follows:
Refer to Table 7-6, at the end of the month, what entry was made to inventory?
A) Credit $2,260
B) Debit $2,260
C) Debit $6,700
D) Credit $6,700
2) Revenues total $20,200, expenses total $17,300, and the owner’s withdrawals
account has a balance of $12,600. What is the balance in the income summary account
prior to closing net income or net loss?
A) $2,900 debit
B) $9,700 debit
C) $2,900 credit
D) $9,700 credit
3) Under a perpetual inventory system, the entry to record the cost of goods sold would
include a debit to:
A) Cost of Goods Sold and a credit to Inventory for the retail price of the inventory
B) Inventory and a credit to Sales Revenue for the retail price of the inventory
C) Cost of Goods Sold and a credit to Inventory for the cost of the inventory
D) Inventory and a credit to Cost of Goods Sold for the cost of the inventory