Question

Walmart sells a bike that cost $100 to a customer for $250 cash. using a perpetual inventory system, the entry to record the sale includes a debit to and credit to for $250. the entry to record the cost of the sale includes a debit to cost of goods sold and a credit to for $100.
i. true
ii. false

Answer 1

1. Using a perpetual inventory system, the entry to record the sale for Walmart includes a debit to the Cash account and a credit to the Sales Revenue account for $250.

2. The entry to record the cost of the sale under the perpetual inventory system includes a debit to the cost of goods sold and a credit to Inventory for $100.

What is the perpetual inventory system?

The perpetual inventory system can be differentiated from the periodic inventory system by the fact that perpetual inventory continuously updates the inventory value without relying on the physical inventory count.

Under this system, the cost of goods sold is debited and the inventory account is credited.

Learn more about the perpetual inventory system at brainly.com/question/25014592