X-Mart uses the perpetual inventory system to account for its merchandise. On May 1, it sold $1,400 of merchandise on credit.

Given the partial list of accounts below, the entry to close the temporary credit balance accounts
would include a:
Account Debit Credit
Sales $20,000
Sales Discounts $ 500
Cost of Goods Sold $1,900
Merchandise Inventory $5,000
Accounts Payable $ 500
Owner, Capital $10,000

credit to Income Summary, $30,500.
credit to Income Summary, $30,000.
credit to Income Summary, $19,500.
credit to Income Summary, $20,000. 


X-Mart uses the perpetual inventory system to account for its merchandise. On May 1, it sold $1,400
of merchandise on credit. The original cost of the merchandise to X-Mart was $500. Demonstrate the
required journal entry to record the sale and the cost of the sale by selecting all of the correct actions

below. (Check all that apply.)

Debit Cost of Goods Sold $500.
Debit Merchandise Inventory $500.
Debit Sales $1,400.
Credit Sales $1,400.
Debit Accounts Receivable $1,400
Credit Merchandise Inventory $500.
Credit Accounts Receivable $1,400.
Credit Cost of Goods Sold $500.