Accounting 9706 · AS & A Level · Accounting for non-current assets

Accounting for non-current assets — practice question

A computer that was used as a demonstration item for customers was classified as capital expenditure. By the year end, a customer had bought the computer as part of the normal trading activities of the business. Which accounting entries are required to adjust the cost of sales?

  • Ainventory debited, demonstration equipment credited
  • Bpurchases debited, demonstration equipment credited
  • Csales debited, inventory credited
  • Dselling expenses debited, sales credited

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