Consider the following short case as you respond to the 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

The entries in VLC's accounting system to record the preceding events would include a credit to sales (for $300), a debit to accounts receivable (also for $300), and a credit to inventory (for $200). Additionally, there would be a debit to cost of goods sold (for $200) and a debit to delivery expense (for $10). However, there would not be a credit to gross profit, as gross profit is a calculated amount and not an account that is directly credited in this situation.

Consider the Following Short Case as You Respond to the Question