When using a perpetual inventory system, the journal entry to record the cost of goods sold is:
A) debit Cost of Goods Sold; credit Sales
B) debit Cost of Goods Sold; credit Inventory
C) debit Inventory; credit Cost of Goods Sold
D) No journal entry is made to record the cost of goods sold.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, the cost of goods sold is recorded by debiting the Cost of Goods Sold account and crediting the Inventory account. This reflects the reduction in inventory due to sales.

When Using a Perpetual Inventory System, the Journal Entry to Record