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 also are entered in the general journal.
D) It cannot be used with a perpetual inventory system.

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, the sales journal for recording sales of merchandise typically includes a Cost of Goods Sold debit and a Merchandise Inventory credit column to reflect the reduction in inventory and the cost associated with the goods sold.

Which of the Following Is TRUE of a Sales Journal