Centium Corporation sold goods to John Dunn for $1,000 on account.Cost of goods sold was $745.Centium uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

Question

Quizplus · Accepted Answer

Perpetual inventory system means that the cost of goods sold is recorded at the time of the sale. In a sales journal, the cost of goods sold is recorded in the "Cost of Goods Sold DR, Merchandise Inventory CR" column. Therefore, option C is the best choice. Option A records the sale but not the cost of goods sold. Option B records the decrease in inventory but does not record the sale. Option D records the increase in accounts receivable but does not record the cost of goods sold.

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