Question 1

Sold merchandise to customer Ahmed on credit for BD10,000. The merchandise sold had cost BD4,400. Select the correct entry for merchandise sold.

Accepted Answer

DR. Cost of goods sold BD4,400 and CR. Merchandise Inventory BD4,400

Answer

DR. Cost of goods sold BD10,000 and CR. Merchandise Inventory BD10,000

Answer

DR. Merchandise Inventory BD4,400 and CR. Cost of goods sold BD4,400

Question 2

Purchased merchandise from Saleh Company for BD13,500.

Accepted Answer

DR. Merchandise Inventory BD13,500 and CR. Account Payable BD13,500.

Answer

DR. Account Payable BD13,500 and CR. Merchandise Inventory BD13,500.

Answer

DR. Purchases BD13,500 and CR. Account Payable BD13,500.

Question 3

Returned sold merchandise by cash to Sara Company for BD 1,750.

Accepted Answer

DR. Sales Returns BD1,750 and CR. Cash BD1,750

Answer

DR. Cash BD1,750 and CR. Sales Returns BD1,750

Answer

DR. Sales BD1,750 and CR. Cash BD1,750

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