When Merchandise Is Sold and the Perpetual System of Inventory

question 21

Multiple Choice

When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include

• A) debiting Accounts Receivable and crediting Sales.
• B) debiting Accounts Receivable and crediting Merchandise Inventory.
• C) debiting Accounts Receivable and crediting Cost of Goods Sold.
• D) debiting Cost of Goods Sold and crediting Sales.