Sara, a customer, purchased $500 of merchandise from Tammy's store. Under the perpetual inventory system, Tammy will record a:

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, when merchandise is sold, the seller records the sale by debiting Accounts Receivable (if sold on credit) or Cash (if sold for cash) for the amount of the sale, reflecting the increase in assets from the sale. This is why option A is correct.

Sara, a Customer, Purchased $500 of Merchandise from Tammy's Store