Feathertouch Company sold merchandise worth $800 on credit,terms n/15.The cost of the merchandise sold was $550.What is the required journal entry to record the transaction under the perpetual inventory system?
A) Accounts Receivable 800
Sales 800
Cost of Goods Sold 550
Merchandise Inventory 550
B) Sales 800
Accounts Receivable 800
Merchandise Inventory 550
Cost of Goods Sold 550
C) Accounts Receivable 800
Merchandise Inventory 800
Cost of Goods Sold 550
Merchandise Inventory 550
D) Merchandise Inventory 800
Sales 800
Cost of Goods Sold 550
Merchandise Inventory 550

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, the sale of merchandise on credit is recorded by debiting Accounts Receivable and crediting Sales for the selling price. Additionally, Cost of Goods Sold is debited and Merchandise Inventory is credited for the cost of the merchandise sold.

Feathertouch Company Sold Merchandise Worth $800 on Credit,terms N/15