Consider the following short case as you respond to the next question: VLC Corporation sold merchandise with a cost of $200 on account for $300 to PRT Corporation; credit terms were 2 / 10, n / 30. VLC paid the outgoing freight charge of $10. PRT paid the invoice within the discount period.The entries in VLC's accounting information system to record all the preceding events will include all of the following except:
A)A debit to cost of goods sold.
B)A debit to delivery expense.
C)A credit to gross profit.
D)A credit to inventory.

Question

Quizplus · Accepted Answer

Gross profit is not directly credited in journal entries; it is calculated as sales minus cost of goods sold.

Consider the Following Short Case as You Respond to the Next