When a Company That Uses the Perpetual Inventory System Sells $\begin{array}{|l|c|c|} \hline \text { Cost of Goods Sold } & \text { XX} &\\\hline \text { Sales } & & \text { XX }\\\hline\end{array}$

Multiple Choice

When a company that uses the perpetual inventory system sells goods for cash,the journal entry to record cost of goods sold is:

A) $\begin{array}{|l|c|c|} \hline \text { Cost of Goods Sold } & \text { XX} &\\\hline \text { Sales } & & \text { XX }\\\hline\end{array}$

B) No journal entry is required.
C) $\begin{array}{|l|c|c|}\hline \text { Cost of Goods Sold } & \text { XX } \\\hline \text { Merchandise Inventory } && \text { XX }\\\hline \end{array}$
D) $\begin{array}{|l|l|l|}\hline\text { Sales } & \mathrm{XX} & \\\hline \text { Merchandise Inventory } & & \mathrm{XX} \\\hline\end{array}$