Under the perpetual inventory system, in addition to making the entry to record a sale, a company would
A)debit Inventory and credit Cost of Goods Sold.
B)debit Cost of Goods Sold and credit Purchases.
C)debit Cost of Goods sold and credit Inventory.
D)make no additional entry until the end of the period.

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, each sale transaction requires two entries: one to record the revenue and another to update the inventory records. The second entry involves debiting Cost of Goods Sold and crediting Inventory to reflect the reduction in inventory due to the sale.

Under the Perpetual Inventory System, in Addition to Making the Entry