A company that uses the perpetual inventory system sold goods to a customer for cash for $3,000.The cost of the goods sold was $600.Which of the following journal entries correctly records this transaction?

Question

Quizplus · Accepted Answer

The journal entry for this transaction will record the sale and cost of goods sold. Since it's a cash sale, there is no account receivable or account payable. The correct journal entry will be:
Debit: Cash account for $3,000
Credit: Inventory account for $600
Credit: Revenue account for $2,400
Option B is the only one with this correct combination of accounts and amounts.

A Company That Uses the Perpetual Inventory System Sold Goods