Under the perpetual inventory system when a company does NOT anticipate or estimate any returns, in addition to making the entry to record the sale, the seller would
A)debit Inventory and credit Cost of Goods Sold.
B)debit Cost of Goods Sold and credit Purchases.
C)debit Cost of Goods Sold and credit Inventory.
D)make no additional entry until the end of the period.

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, when a sale is made, the seller records the cost of the goods sold by debiting Cost of Goods Sold and crediting Inventory. This reflects the reduction in inventory due to the sale and recognizes the cost associated with the sale.

Under the Perpetual Inventory System When a Company Does NOT