A company sold merchandise with a cost of $231 for $480 on account.The seller uses the perpetual inventory system.The entry to record the cost of merchandise sold would include ________.

Question

Quizplus · Accepted Answer

The entry to record the cost of merchandise sold in a perpetual inventory system includes a debit to Cost of Goods Sold and a credit to Merchandise Inventory for the cost of the merchandise sold, which in this case is $231. Therefore, option C is the correct choice. Options A and B are incorrect because they do not account for the cost of goods sold, and options D is incorrect because it incorrectly debits Merchandise Inventory for the selling price instead of the cost.

A Company Sold Merchandise with a Cost of $231 for $480