Question

A company sold merchandise with a cost of​ $217 for​ $390 on account. The seller uses the perpetual inventory system. The entry to record the cost of merchandise sold would include​ ________.

A. a debit to Merchandise Inventory for​ $231 and a credit to Cost of Goods Sold for​ $231
B. a debit to Cash and a credit to Sales Revenue for​ $480
C. a debit to Sales Revenue and a credit to Cash for​ $480
D. a debit to Cost of Goods Sold and a credit to Merchandise Inventory for​ $231

Answer 1

Answer:a debit to Cost of Goods Sold and a credit to Merchandise Inventory for​ $217

( The answer Is not in the options given)

Step-by-step explanation:

The Perpetual inventory is a method of accounting for inventory which immediately records when an inventory is sold or purchased using the available point-of-sale software systems of the particular business.

In that regard , the entry to record cost of merchandise sold

Account titles Debit Credit

Cost of goods (Merchandise sold) $217

Merchandise Inventory $217