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

question 212

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) \(\begin{array}{|l|c|c|}
• \hline \text { Cost of Goods Sold } & \text { XX} &\\
• \hline \text { Sales } & & \text { XX }\\
• \hline
• \end{array}\)
• B) No journal entry is required.
• C) \(\begin{array}{|l|c|c|}
• \hline \text { Cost of Goods Sold } & \text { XX } \\
• \hline \text { Merchandise Inventory } && \text { XX }\\
• \hline
• \end{array}\)
• D) \(\begin{array}{|l|l|l|}
• \hline\text { Sales } & \mathrm{XX} & \\
• \hline \text { Merchandise Inventory } & & \mathrm{XX} \\
• \hline
• \end{array}\)

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Definitions:

Protonation

The addition of a proton (H+) to an atom, molecule, or ion, usually increasing its net positive charge.

Sodium Hydroxide

A strong base and alkali that is highly soluble in water, forming caustic solutions, commonly used in many industrial and laboratory processes.

Transformation

A thorough or dramatic change in form or appearance.

Isobutylbenzene

An organic compound made up of a benzene ring attached to an isobutyl group, used in the manufacture of other chemicals.