Question

Under the perpetual inventory system, in addition to making the entry to record a sale, a company would debit Inventory and credit Cost of Goods Sold. debit Cost of Goods Sold and credit Purchases. debit Cost of Goods sold and credit Inventory. make no additional entry until the end of the peri

Answer 1

Answer:

The journal entry is shown below:

Explanation:

The journal entry for the sale of the goods using the system of perpetual inventory is shown below:

Cost of Goods sold A/c.............................Dr   XXXX

               Inventory A/c........................................Cr XXXX

Being record the sale using perpetual inventory system

Under the system of perpetual inventory, the sale or the purchase of inventory is recorded immediately using the point of sale system.

So, account of Cost of goods sold (COGS) is debited against the inventory which is sold through the business and that is credited.