Centi Corporation sold goods to John for $1,000 on credit. Cost of goods sold was $745. Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $745 in the:

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As per the perpetual inventory system, the cost of goods sold would be debited to the Cost of Goods Sold account and credited to the Merchandise Inventory account. Therefore, $745 will be recorded in the Cost of Goods Sold DR, Merchandise Inventory CR column. The Accounts Receivable DR, Sales Revenue CR column will be used to record the sale of goods to John for $1,000.

Centi Corporation Sold Goods to John for $1,000 on Credit