Under perpetual inventory system, the journal entry to record cost of sales of merchandise items is:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question 11
Under perpetual inventory system, the journal entry to record
cost of sales of merchandise items is:
Debit Inventory; credit Sales.
Debit Cost of Goods Sold; credit Sales.
No journal entry is required.
Debit Cost of Goods Sold; credit Inventory.
Transcribed Image Text:Question 11 Under perpetual inventory system, the journal entry to record cost of sales of merchandise items is: Debit Inventory; credit Sales. Debit Cost of Goods Sold; credit Sales. No journal entry is required. Debit Cost of Goods Sold; credit Inventory.
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