In a perpetual inventory system,when cash sales are recorded,________.
A) merchandise inventory decreases and cost of goods sold decreases
B) sales revenue increases and cash decreases
C) sales revenue increases and cost of goods sold decreases
D) merchandise inventory decreases and cost of goods sold increases

Question

Quizplus · Accepted Answer

In a perpetual inventory system, when cash sales are recorded, the merchandise inventory decreases because the goods are sold, and the cost of goods sold increases as it reflects the cost of the inventory that has been sold.

In a Perpetual Inventory System,when Cash Sales Are Recorded,________