When a company that uses the perpetual inventory system sells goods for cash,the journal entry to record cost of goods sold is:
A) $\begin{array}{|l|c|c|}
\hline \text { Cost of Goods Sold } & \text { XX} &\
\hline \text { Sales } & & \text { XX }\
\hline
\end{array}$

B) No journal entry is required.
C) $\begin{array}{|l|c|c|}
\hline \text { Cost of Goods Sold } & \text { XX } \
\hline \text { Merchandise Inventory } && \text { XX }\
\hline
\end{array}$
D) $\begin{array}{|l|l|l|}
\hline\text { Sales } & \mathrm{XX} & \
\hline \text { Merchandise Inventory } & & \mathrm{XX} \
\hline
\end{array}$

Question

When a company that uses the perpetual inventory system sells goods for cash,the journal entry to record cost of goods sold is:
A) $\begin{array}{|l|c|c|}
 \hline \text { Cost of Goods Sold  } & \text { XX}  &\
\hline \text { Sales } & & \text { XX }\
\hline
\end{array}$

B) No journal entry is required.
C) $\begin{array}{|l|c|c|}
\hline \text { Cost of Goods Sold } & \text { XX } \
\hline \text { Merchandise Inventory } && \text { XX }\
\hline 
\end{array}$
D) $\begin{array}{|l|l|l|}
\hline\text { Sales } & \mathrm{XX} & \
\hline \text { Merchandise Inventory } & & \mathrm{XX} \
\hline
\end{array}$

Quizplus · Accepted Answer

The correct journal entry to record the cost of goods sold under the perpetual inventory system involves debiting the Cost of Goods Sold account and crediting the Merchandise Inventory account to reflect the reduction in inventory due to the sale.

When a Company That Uses the Perpetual Inventory System Sells Cost of Goods Sold XX Sales XX \begin{array}{|l|c|c|} \hline \text { Cost of Goods Sold } & \text { XX} &\\\hline \text { Sales } & & \text { XX }\\\hline\end{array} Cost of Goods Sold Sales ​ XX​ XX ​​

When a Company That Uses the Perpetual Inventory System Sells $\begin{array}{|l|c|c|} \hline \text { Cost of Goods Sold } & \text { XX} &\\\hline \text { Sales } & & \text { XX }\\\hline\end{array}$