Question 2: A retail company sells inventory worth $100,000 during the month of June. Provide detailed steps for recording this sales transaction and its subsequent impact on financial statements under the perpetual inventory system.

Requirements:

1. Record the journal entry to recognize the sale of inventory on account.
2. Post the journal entry to the Accounts Receivable and Sales Revenue accounts in the ledger.
3. Calculate the cost of goods sold (COGS) associated with the sale using the perpetual inventory system.
4. Record the journal entry to recognize the COGS.
5. Post the journal entry to the COGS account in the ledger.
6. Analyze how this transaction affects the company's balance sheet and income statement.
7. Explain the importance of maintaining accurate inventory records in the perpetual inventory system.
8. Discuss the impact of inventory errors on financial statements and decision-making.
9. Evaluate strategies for minimizing inventory errors and improving inventory management.
10. Illustrate how the perpetual inventory system provides real-time insight into inventory levels and cost of goods sold.