Under the Perpetual Inventory System, What Is the Entry to Record

question 46

Multiple Choice

Under the perpetual inventory system, what is the entry to record the cost price of goods sold on credit?

• A) Debit inventory, credit cost of sales
• B) Debit cost of sales, credit inventory
• C) Debit cost of sales, credit inventory, credit GST outlays
• D) Debit cost of sales, credit purchases

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Definitions:

Economic Activity

All actions that involve producing, trading, selling, and buying goods and services within an economy.

Final Good

A product that is consumed directly by the end-user or customer and will not be used to produce any further goods or services.

Laundry Services

Services provided by businesses to clean clothing and textiles for individuals or commercial customers.

Gross Domestic Product

A measure of the economic performance of a country, reflecting the market value of all final goods and services produced within a country's borders in a given period.