1.This year, the store has begun to carry the Flat TV manufactured by Bass Co. Thus far, Washington has recorded the following transactions involving the Flat TV:Jan. 5 Purchased 8 Flat TVs at a unit cost of $1,400Jan. 18 Purchased 5 additional Flat TVs at $1,400 eachFeb. 12 Sold 9 Flat TVs to the Duke Hotel for $15,300Refer to the information above. The gross profit on the Flat TVs as of February 12th is:
A) $15,300.
B) $11,200.
C) $2,700.
D) $4,100.
2.Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the sale on February 12th would include all of the following except:
A) A credit to Inventory for $15,300.
B) A credit to Sales Revenue for $18,200.
C) A credit to Purchases for $15,300.
D) A debit to the Cost of Goods Sold for $15,300.