When Merchandise Is Sold and the Perpetual System of Inventory

Multiple Choice

When merchandise is sold and the perpetual system of inventory is used, the journal entry to record a sale of merchandise on account would include:

A) debiting Accounts Receivable and crediting Sales.
B) debiting Accounts Receivable and crediting Inventory.
C) debiting Accounts Receivable and crediting Cost of Goods Sold.
D) debiting Cost of Goods Sold and crediting Accounts Receivable.