Northern Company sold goods to Eastern Enterprises for $1,000 on account.Cost of goods sold was $745.Northern uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

Question

Quizplus · Accepted Answer

In the perpetual inventory system, the cost of goods sold is recorded in the Cost of Goods Sold DR (Debit) and Merchandise Inventory CR (Credit) accounts. Therefore, the cost of goods sold will be recorded in the Cost of Goods Sold column of the sales journal, which is option C. The other options do not reflect the correct accounts or system for recording cost of goods sold.

Northern Company Sold Goods to Eastern Enterprises for $1,000 on Account.Cost