A company sells goods at a selling price of $20,000. The cost of the goods is $15,000 Under a perpetual inventory system the journal entries to record the sale will include:

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Under a perpetual inventory system, the journal entry to record the sale of goods includes debiting the Cost of Goods Sold account for the cost of goods sold ($15,000) and crediting the Inventory account for the same amount ($15,000). This entry reflects the removal of the sold goods from inventory and the corresponding cost of those goods that are now expensed as cost of goods sold. There is no involvement of Accounts Payable or Sales accounts for this journal entry.

A Company Sells Goods at a Selling Price of $20,000