Question

A company purchased inventory for? $700 per unit. the company later sold one unit of the inventory for cash of? $2,400. under the perpetual inventory? system, which accounts will be debited to record the? sale?

Answer 1

Under the perpetual inventory system, the accounts that will be debited to record the sale is that the cost of goods sold is $700 and the cash is $2,400. In using a perpetual inventory system, the important entries that are to be prepared when two units of merchandise are sold on account are debit accounts receivable and credit sales revenue and debit cost of goods sold and credit inventory.