Which of the following transactions will be recorded as income?
A) Borrow $50 000 from the bank.
B) A. J. Smith pays $2 500 for goods sold to him on credit last month.
C) Sold inventory on credit for $5 000.
D) Owner contributes $8 000 of personal funds to the business.

Question

Quizplus · Accepted Answer

Selling inventory on credit for $5,000 is recorded as income because it represents revenue earned from sales, even though the cash has not yet been received.

Which of the Following Transactions Will Be Recorded as Income