The entry to record the sale of merchandise in a perpetual system is:
A) a debit to Cost of goods sold and a credit to Sales revenue.
B) a debit to Cash or accounts receivable and a credit to Cost of goods sold.
C) a debit to Sales revenue and a credit to Cost of goods sold.
D) none of the above.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, the sale of merchandise is recorded by debiting Cash or Accounts Receivable and crediting Sales Revenue for the sale portion, and by debiting Cost of Goods Sold and crediting Inventory for the cost portion. None of the provided options accurately describe this two-part transaction.

The Entry to Record the Sale of Merchandise in a Perpetual