Problem: The SD Company makes the following entry in its accounting records: Cost of Goods Sold                                 275      Inventory                                                    275 This entry would be made when merchandise is a. sold and the periodic inventory method is used. b. sold and the perpetual inventory method is used. c. purchased and the perpetual inventory method is used. d. purchased and the periodic inventory method is used.

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Problem Details

The SD Company makes the following entry in its accounting records:

Cost of Goods Sold                                 275
     Inventory                                                    275

This entry would be made when merchandise is

a. sold and the periodic inventory method is used.

b. sold and the perpetual inventory method is used.

c. purchased and the perpetual inventory method is used.

d. purchased and the periodic inventory method is used.

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