Dombrose Company uses a perpetual inventory system. On January 1, inventory is $253,000. On April 5, Dombrose sells inventory with a selling price of $75,000 on account. The cost of the inventory sold is $50,000. The journal entry (entries) to record the sale is (are) ________.
A) debit Cash and Cost of Goods Sold and credit Sales Revenue and Inventory
B) debit Accounts Receivable and credit Sales Revenue; debit Cost of Goods Sold and credit Inventory
C) debit Accounts Receivable and credit Sales Revenue
D) debit Cash and credit Sales Revenue

Question

Quizplus · Accepted Answer

The sale of inventory on account is recorded by debiting Accounts Receivable and crediting Sales Revenue. The cost of goods sold is recorded by debiting Cost of Goods Sold and crediting Inventory.

Dombrose Company Uses a Perpetual Inventory System