The entries to record a $4,500 sale on account under a perpetual inventory system, when the cost of the merchandise is $3,000, include a:
A)debit to Inventory for $3,000.
B)credit to Sales Revenue for $3,000.
C)debit to Sales Revenue for $4,500.
D)credit to Inventory for $3,000.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, when a sale is made, Inventory is credited to decrease it by the cost of goods sold, which is $3,000 in this case.

The Entries to Record a $4,500 Sale on Account Under