Asked by
Shahana Ahmad
on Nov 12, 2024
Verified
In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is a
A) debit to Cost of Merchandise Sold and a credit to Sales
B) debit to Cost of Merchandise Sold and a credit to Merchandise Inventory
C) debit to Merchandise Inventory and a credit to Cost of Merchandise Sold
D) debit to Accounts Receivable and a credit to Merchandise Inventory
Cost Of Merchandise Sold
The total cost incurred to manufacture or purchase products that were sold to customers during a period.
Perpetual Inventory Records
A method of maintaining real-time records of inventory levels, where updates are made automatically for every sale, return, and receipt of merchandise.
- Differentiate ongoing from interval-based inventory systems and their implications on accounting logs.
- Identify the entries for recording sales and the cost of merchandise sold.
Verified Answer
LC
Learning Objectives
- Differentiate ongoing from interval-based inventory systems and their implications on accounting logs.
- Identify the entries for recording sales and the cost of merchandise sold.
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