In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is:

Question

Quizplus · Accepted Answer

When recording the cost of merchandise sold for cash, we need to reduce the inventory account and recognize the expense through the cost of merchandise sold account. Therefore, we would debit the Cost of Merchandise Sold account and credit the Merchandise Inventory account.

In Recording the Cost of Merchandise Sold for Cash, Based