The journal entries to record a credit sale under the perpetual inventory system will include:

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, a credit sale impacts both the revenue and the cost of goods sold. The entry to record the sale itself would debit Accounts Receivable (or Sales) and credit Sales Revenue. The entry to record the cost associated with that sale would debit Cost of Goods Sold and credit Inventory, reflecting the reduction in inventory due to the sale. Therefore, option A is correct as it involves debiting Cost of Goods Sold, which is part of the necessary journal entries.

The Journal Entries to Record a Credit Sale Under the Perpetual