Which of the following is true of a sales journal prepared under the perpetual inventory system?
A)It includes a Cost of Goods Sold DR, Merchandise Inventory CR column.
B)It records both cash and credit sales transactions.
C)All transactions recorded in a sales journal are also entered in the general journal.
D)It cannot be used with a perpetual inventory system.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, each sale transaction is recorded with a Cost of Goods Sold debit and a Merchandise Inventory credit to reflect the immediate update of inventory levels and cost.

Which of the Following Is True of a Sales Journal