Using a perpetual inventory system, the seller's journal entry to record the sale of merchandise on account includes a:
A) Credit to Purchases
B) Debit to Inventory
C) Debit to Accounts Receivable
D) Credit to Cost of Goods Sold

Question

Quizplus · Accepted Answer

Under a perpetual inventory system, when merchandise is sold on account, the following entry is made by the seller:
Accounts receivable XXX
$\quad $ $\quad $ $\quad $ $\quad $ Sales revenue XXX
Cost of goods sold XXX
$\quad $ $\quad $ $\quad $ $\quad $ Inventory XXX

Using a Perpetual Inventory System, the Seller's Journal Entry to Record