In a perpetual inventory system,two entries usually are made to record each sales transaction.The purposes of these entries are best described as follows:
A)One entry recognizes the sales revenue,and the other recognizes the cost of goods sold.
B)One entry records the purchase of the merchandise,and the other records the sale.
C)One entry records the cost of goods sold,and the other reduces the balance in the Inventory account.
D)One entry updates the general ledger,and the other updates the subsidiary ledgers.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, one entry is made to recognize the sales revenue, and another entry is made to recognize the cost of goods sold, which also reduces the inventory account.

In a Perpetual Inventory System,two Entries Usually Are Made to Record