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Question
Que Corporation uses a process cost accounting system. The company manufactured certain goods at a cost of $800 and sold them on credit to Are Corporation for $1,075. The complete journal entry to be made by Que at the time of this sale is:
| A. | Accounts ReceivableAre Corporation | 1,075 | |
| Cost of Goods Sold | 800 | ||
| Sales | 1,075 | ||
| Finished Goods Inventory | 800 | ||
| B. | Accounts ReceivableAre Corporation | 1,075 | |
| Finished Goods Inventory | 800 | ||
| Sales | 275 | ||
| C. | Cost of Goods Sold | 1,075 | |
| Sales | 1,075 | ||
| D. | Finished Goods Inventory | 800 | |
| Sales | 1,075 | ||
| Accounts ReceivableAre Corporation | 1,075 | ||
| Cost of Goods Sold | 800 | ||
| E. | Accounts ReceivableAre Corporation | 1,075 | |
| Selling expense | 800 | ||
| Sales | 1,075 | ||
| Cost of Goods Sold | 800 | ||
Answer
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