Under the perpetual inventory system,two journal entries are used to record the sale of merchandise.One entry records the Sales Revenue and another entry records the Cost of Goods Sold.

Question

Quizplus · Accepted Answer

This statement is true. Under the perpetual inventory system, the sale of merchandise is recorded using two journal entries. The first entry records the Sales Revenue, while the second entry records the Cost of Goods Sold. This helps in maintaining an accurate and up-to-date inventory balance.

Under the Perpetual Inventory System,two Journal Entries Are Used to Record