Centium Corporation sold goods to John Dunn 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 ________.

Question

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In a perpetual inventory system, the cost of goods sold is recorded at the time of the sale. Therefore, the company will record $745 in the Cost of Goods Sold DR, Merchandise Inventory CR column. There is no need to record the sales revenue or accounts receivable in the sales journal as they will be recorded separately in the accounts receivable subsidiary ledger and the general ledger.

Centium Corporation Sold Goods to John Dunn for $1,000 on Credit.Cost