3 Jones Company sold merchandise on account for 90000 This m

3.			Jones Company sold merchandise on account for $90,000. This merchandise cost $52,000. The company uses the perpetual method of accounting for inventory. What would be the correct journal entry to record the transaction?
		A.	Accounts Receivable		38,000
			Cost of Goods Sold		52,000
			Sales				90,000
		B.	Accounts Receivable		90,000
			Sales				90,000
		C.	Accounts Receivable		90,000
			Sales				90,000
			Cost of Goods Sold		52,000
			Merchandise Inventory		52,000
		D.	Accounts Receivable		90,000
			Merchandise Inventory		52,000
			Gain on Sale			38,000

3.			Jones Company sold merchandise on account for $90,000. This merchandise cost $52,000. The company uses the perpetual method of accounting for inventory. What would be the correct journal entry to record the transaction?
		A.	Accounts Receivable		38,000
			Cost of Goods Sold		52,000
			Sales				90,000
		B.	Accounts Receivable		90,000
			Sales				90,000
		C.	Accounts Receivable		90,000
			Sales				90,000
			Cost of Goods Sold		52,000
			Merchandise Inventory		52,000
		D.	Accounts Receivable		90,000
			Merchandise Inventory		52,000
			Gain on Sale			38,000

Solution

Correct journal entry :

So answer is c)

Date	account & explanation	debit	credit
	Account receivable	90000
	Sales		90000
	Cost of goods sold	52000
	Merchandise inventory		52000