Corbit Corp.sold merchandise for $10,000 cash.The cost of merchandise sold was $7,590.The journal entries to record this transaction under the perpetual inventory system would be

Question

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Under the perpetual inventory system, the cost of merchandise sold is recorded as soon as the sale is made. The journal entry for the sale of merchandise for cash would be:

Cash $10,000
Sales $10,000
Cost of merchandise sold $7,590
Merchandise inventory $7,590

Option A is incorrect because it does not properly record the cost of merchandise sold. Option C is incorrect because it records the cost of merchandise sold as the same amount as the sales revenue. Option D is incorrect because it does not properly record the sales revenue.