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)Debit Accounts Receivable, $300.Credit Sales, $300.
B)Debit Cost of Goods Sold, $200.Credit Inventory, $200.
C)Debit Delivery Expense, $10.Credit Cash, $10.
D)Debit Cash, $294.Debit Inventory, $6.Credit Accounts Receivable, $300.

Question

Quizplus · Accepted Answer

Choice A is correct because it records the sale and the corresponding increase in Accounts Receivable and Sales Revenue. Choice B is correct because it records the decrease in inventory and the corresponding increase in Cost of Goods Sold. Choice C is correct because it records the outgoing freight charge and the corresponding decrease in Cash. Choice D is incorrect because it records an additional debit to Inventory for $6, which is not necessary. The cost of goods sold has already been recorded in Choice B.

Consider the Following Short Case as You Respond to the Question