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andre [41]
4 years ago
6

When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include:_____.a. debi

ting Cost of Goods Sold and crediting Accounts Receivable. b. debiting Accounts Receivable and crediting Sales. c. debiting Accounts Receivable and crediting Cost of Goods Sold. d. debiting Accounts Receivable and crediting Inventory.
Business
1 answer:
12345 [234]4 years ago
8 0

Answer:

b. debiting Accounts Receivable and crediting Sales.

Explanation:

When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include debiting Accounts Receivable and crediting Sales.

A perpetual system of inventory can be defined as a process of financial accounting, which involves the recording of informations about an inventory on a continuous basis (in real-time) as the sales or purchases are made through the use of enterprise management software applications and a digitized point-of-sale services.

In Accounting, to record a journal entry for a sale on an account, the account receivable would be debited because it is an asset and shall be increased with debits while crediting the sales account for the amount being paid by the customer.

Under a perpetual system of inventory, updates of the journal entry for a sale would include debiting Accounts Receivable and crediting Sales immediately as it is being made or happening. This is to ensure that the inventory account balance is always accurate provided there are no spoilage, theft etc.

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Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers.

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7 0
3 years ago
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The short run refers to a period of less than one year.

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The statements is false that the short run refers to a period of less than one year.

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Sales forecasts <u>help auditors understand </u><u>management's strategy</u>

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<u />

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A sales forecast is an indication of predicted sales revenue. What your business expects to sell during a specific time period is estimated by a sales forecast (like a quarter or year). The most accurate sales projections do this. By providing knowledge of the probable behavior of your most valued clients, sales forecasting aids in achieving this revenue efficiency. In addition to enhancing pricing, advertising, and product development, you may forecast future sales. The ability of your business to predict future revenues across particular time periods in order to better manage resources is one of the benefits of sales forecasting.

To learn more about sales forecast click on the given link:

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