Using a perpetual inventory system, which of the following entries would record the sale of merchandise sold on credit?

Question

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In a perpetual inventory system, the sale of merchandise on credit is recorded by debiting Accounts Receivable and crediting Sales Revenue. Option D is the only one that includes a credit to Accounts Receivable, so it is the correct choice. Option A has a debit entry to the Inventory account which suggests that merchandise was sold for cash, not on credit. Option B has a debit to Cost of Goods Sold and credit to Inventory, which is incorrect. Option C has a debit to Accounts Receivable but there is no corresponding credit entry, so it is also incorrect.

Using a Perpetual Inventory System, Which of the Following Entries