MultiMet Corporation sold merchandise for $4,450 to Simpsons Inc.on credit.The cost of goods sold was $1,185.Assuming that the firm is following a perpetual inventory system,it will record $4,450 in the ________.

Question

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Since MultiMet Corporation is following a perpetual inventory system, it will record the sale of merchandise on credit in the Accounts Receivable DR, Sales Revenue CR column of the sales journal. This journal entry increases the Accounts Receivable account and the Sales Revenue account while also recognizing the cost of goods sold in the COGS account.

MultiMet Corporation Sold Merchandise for $4,450 to Simpsons Inc