Good Inc. ,sold inventory for $1,200 that was purchased for $700.Good records which of the following when it sells inventory using a perpetual inventory system?

Question

Quizplus · Accepted Answer

In a perpetual inventory system, when inventory is sold, the cost of the goods sold is debited to the Cost of Goods Sold account and credited to the Inventory account to reflect the reduction in inventory. The amount is based on the cost of the inventory sold ($700), not the sales price.

Good Inc ,Sold Inventory for $1,200 That Was Purchased for $700