Hexagon Corporation sold a product on credit for $2,235 to Merin Lynch.The cost of goods sold was $1,324.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $2,235 in the ________.
A)Accounts Receivable CR,Sales Revenue DR column
B)Cost of Goods Sold DR,Merchandise Inventory CR column
C)Merchandise Inventory DR,Cost of Goods Sold CR column
D)Accounts Receivable DR,Sales Revenue CR column

Question

Quizplus · Accepted Answer

In a perpetual inventory system, when a sale is made on credit, the Accounts Receivable is debited and Sales Revenue is credited for the amount of the sale.

Hexagon Corporation Sold a Product on Credit for $2,235 to Merin