When recording a credit sale in a perpetual inventory system, all of the following accounts are affected EXCEPT
A) Sales Revenue.
B) Accounts Receivable.
C) Merchandise Inventory.
D) Cash.

Question

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In a perpetual inventory system, when a credit sale occurs, the accounts affected include Sales Revenue (to record the income from the sale), Accounts Receivable (to record the customer's obligation to pay in the future), and Merchandise Inventory (to adjust the inventory for the goods sold). Cash is not immediately affected by a credit sale, as payment is expected at a later date.

When Recording a Credit Sale in a Perpetual Inventory System