In a perpetual inventory system,the sale of items for cash consists of two entries.One entry is a debit to Cash and a credit to Sales.The other entry is a debit to
A)Work in Process Inventory and a credit to Finished Goods Inventory.
B)Finished Goods Inventory and a credit to Cost of Goods Sold.
C)Cost of Goods Sold and a credit to Finished Goods Inventory.
D)Finished Goods Inventory and a credit to Work in Process Inventory.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, when an item is sold, the cost of the goods sold is recognized by debiting Cost of Goods Sold and crediting Finished Goods Inventory, reflecting the reduction in inventory and the expense of the sold goods.

In a Perpetual Inventory System,the Sale of Items for Cash