A company that uses the perpetual inventory system sold goods to a customer for cash for $3,000. The cost of the goods sold was $1,000. Which of the following journal entries correctly records this transaction?

Question

Quizplus · Accepted Answer

The journal entry for a sale made using the perpetual inventory system is as follows:
Debit: Cash or Accounts Receivable (whichever is applicable) - $3,000
Credit: Sales Revenue - $3,000
Debit: Cost of Goods Sold - $1,000
Credit: Inventory - $1,000
Option B correctly records this transaction with the above journal entries.

A Company That Uses the Perpetual Inventory System Sold Goods