In recording the cost of goods sold for cash, based on data available from perpetual inventory...

In recording the cost of goods sold for cash, based on data available from perpetual inventory records, the journal entry is

a. debit Inventory; credit Cost of Goods Sold

b. debit Accounts Receivable; credit Inventory

c. debit Cost of Goods Sold; credit Sales

d. debit Cost of Goods Sold; credit Inventory

Solutions

Expert Solution

In recording the cost of goods sold for cash based on data available from perpetual inventory records the journal entry is

D. Cost of goods sold account dr

Inventory (credit)

Since inventory balance is reducing it should be credited and as per perpetual inventory system the above one is the entry.

ekkarill92 answered 1 year ago

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