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:

Unit Elasticity

A circumstance where the percentage variation in the quantity that is either demanded or supplied matches the percentage variation in its price.

Demand

The amount of a product or service that shoppers are ready and capable of buying at different price levels within a specific period.

Total Revenue

The sum of money a company earns from selling products or providing services in a specific time frame.