f merchandise costing $500 is sold on account for $620, how is this transaction

Question

f merchandise costing $500 is sold on account for $620, how is this transaction recorded when using a perpetual inventory system? Debit Accounts Receivable, credit Sales Revenue for $620; debit Cost of Goods Sold, and credit Inventory for $500 Debit Accounts Receivable and credit Sales Revenue for $620 Debit Cash and credit Sales Revenue for $620; debit Cost of Goods Sold and credit Inventory for $500 Debit Accounts Receivable and credit Sales Revenue for $620; debit Inventory and credit Cost of Goods Sold for $500

Explanation / Answer

ANSWER = B) Debit Cost of Goods Sold, and credit Inventory for $500 Debit Accounts Receivable and credit Sales Revenue for $620 Debit Cash and credit Sales Revenue for $620

ACCOUNT TITLE

DEBIT

CREDIT

Cost of Goods Sold

$500

Inventory

$500

Accounts Receivable

$ 620

Sales Revenue

$620

Cash

$ 620

Sales revenue

$620

ACCOUNT TITLE

DEBIT

CREDIT

Cost of Goods Sold

$500

Inventory

$500

Accounts Receivable

$ 620

Sales Revenue

$620

Cash

$ 620

Sales revenue

$620

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