Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the sale on February 12th would include all of the following except:
A) A debit to the Cost of Goods Sold for $15,300.
B) A credit to Sales Revenue for $18,200.
C) A credit to Purchases for $15,300.
D) A credit to Inventory for $15,300.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, inventory is continuously updated, therefore, there is no need for a credit to Purchases account as the inventory has already been recorded. The journal entry would include a debit to Cost of Goods Sold for $15,300, a credit to Sales Revenue for $18,200, and a credit to Inventory for $15,300.

Refer to the Information Above