Which the cost of goods sold account is used

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Reference no: EM133007438

Problem 1: A credit memorandum is prepared when

A) customers refuse to pay their accounts.
B) goods that were sold on credit are returned.
C) goods are sold on credit.
D) an employee does a good job.

Problem 2: The collection of a P600 account after the 2 percent discount period will result in a

A) debit to Sales Discounts for P12.
B) debit to Cash for P588.
C) credit to Cash for P600.
D) credit to Accounts Receivable for P600.

Problem 3: In a perpetual inventory system, the Cost of Goods Sold account is used

A) only when a cash sale of merchandise occurs.
B) only when a credit sale of merchandise occurs.
C) whenever there is a sale of merchandise or a return of merchandise sold.
D) only when a sale of merchandise occurs.

Reference no: EM133007438

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