if-a-company-uses-specific-identification-and-sells-a-unique-item-for-1200000-pu

Question

If a company uses specific identification and sells a unique item for $1,200,000, purchased for $900,000, what journal entries should be made?

Accepted Answer

Debit Cash $1,200,000; Credit Revenue $1,200,000; Debit Cost of Goods Sold $900,000; Credit Inventory $900,000

Answer

Debit Revenue $1,200,000; Credit Cash $1,200,000; Debit Inventory $900,000; Credit Cost of Goods Sold $900,000

Answer

Debit Cash $900,000; Credit Revenue $900,000; Debit Cost of Goods Sold $1,200,000; Credit Inventory $1,200,000

Answer

Debit Inventory $1,200,000; Credit Cash $1,200,000; Debit Revenue $900,000; Credit Cost of Goods Sold $900,000

If a company uses specific identification and sells a unique item for \$1,200,000, purchased for \$900,000, what journal entries should be made?