In recording the cost of goods sold for cash, based on data available from perpetual inventory records, the journal entry is

Question

Quizplus · Accepted Answer

When goods are sold for cash, it reduces the inventory in the perpetual inventory system. Therefore, the journal entry would be to debit Cost of Goods Sold and credit Inventory. Option A is incorrect because the credit should be cash instead of sales. Option C is incorrect because it's the reverse of the correct entry. Option D is incorrect because it involves accounts receivable, which is not relevant in this transaction.

In Recording the Cost of Goods Sold for Cash, Based