Use the information above to answer the following question.The journal entry necessary at the end of the period to transfer beginning inventory and net purchases to cost of goods sold will include which of the following?
A)Credit Inventory,$6,250.
B)Debit Purchases,$11,250.
C)Debit Inventory,$6,250.
D)Debit Cost of goods sold,$11,250.

Question

Quizplus · Accepted Answer

To transfer beginning inventory and net purchases to cost of goods sold, we need to debit the cost of goods sold account and credit the inventory account. The amount to be debited will be the total of beginning inventory and net purchases, which is $11,250. Therefore, option D is the correct choice.

Use the Information Above to Answer the Following Question