A company sold inventory worth $212 for $330 on credit.The seller uses the perpetual inventory system.The entry to record the cost of inventory sold would include:

Question

Quizplus · Accepted Answer

The perpetual inventory system requires the cost of goods sold to be recorded at the time of the sale. In this case, the inventory worth $212 was sold, so the cost of goods sold is also $212. Therefore, the entry to record the cost of inventory sold would be a debit to the Cost of sales account for $212 and a credit to the Inventory account for $212. Option A is incorrect because it incorrectly debits inventory and credits cost of sales. Options C and D are also incorrect because they do not relate to the cost of goods sold, but rather to the sale itself.

A Company Sold Inventory Worth $212 for $330 on Credit