Question
A company uses the perpetual inventory method. Which of the following entries would be made to record a sale of inventory on account? EXPLAIN WHY
A company uses the perpetual inventory method. Which of the following entries would be made to record a sale of inventory on account? EXPLAIN WHY YOU CHOSE THE ANSWER
A) The accounting entry would be a debit to Accounts payable and a credit to Purchases.
B) The accounting entry would be a credit to sales and debit to A/R; and a corresponding debit to inventory and credit to COGS
C) The accounting entry would be a debit to Inventory and a credit to COGS.
D) The accounting entry would be a credit to sales and debit to AR and a debit to COGS and credit to Inventory.
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