The journal entry to record a sale of inventory under the perpetual system includes:

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, the sale of inventory involves two journal entries: one to record the sale itself (a debit to Accounts Receivable or Cash and a credit to Sales) and another to record the cost of the goods sold (a debit to Cost of Goods Sold and a credit to Merchandise Inventory). Therefore, both A and C are correct.

The Journal Entry to Record a Sale of Inventory Under