When a Company That Uses the Perpetual Inventory System Sells $$\begin{array} { | l | r | r | } \hline \text { Cost of Goods Sold } & \chi \chi & \\\hline \text { Sales } & & \chi \chi \\\hline\end{array}$$

question 162

Multiple Choice

When a company that uses the perpetual inventory system sells goods for cash, the journal entry to record cost of goods sold is:

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of Goods Sold } & \chi \chi & \\
• \hline \text { Sales } & & \chi \chi \\
• \hline
• \end{array}\]
• B) No journal entry is required.
• C) \[\begin{array} { | c | r | l | }
• \hline \text { Cost of Goods Sold } & \chi \chi & \\
• \hline \text { Merchandise Inventory } & & \chi \chi \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Sales } & \chi \chi & \\
• \hline \text { Merchandise Inventory } & & \chi \chi \\
• \hline
• \end{array}\]

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