Question

A company sold merchandise with a cost of​ $213 for​ $440 on account. The seller uses the perpetual inventory system. The entry to record the cost of merchandise sold would include​ ________.

Answer 1

Step-by-step explanation:

The journal entry for recording the cost of merchandise sold is shown below:

Cost of goods sold A/c Dr $213

To Merchandise Inventory A/c $213

(Being cost of merchandise inventory is recorded)

In this question, we record the cost, not the sale value. That's why we consider $213, not $440 amount