A company purchased inventory for $1,400 per unit. The company later sold one unit of the...
A company purchased inventory for
$1,400
per unit. The company later sold one unit of the inventory for cash of
$1,900.
Under the perpetual inventory system, which accounts will be debited to record the sale?
Homework Answers
Journal entries for sale under perpetual inventory System:
(i)
Cash Account ..... Debit $1900
Sale Account ...... Credit $1900
(ii)
Cost of goods sold Account .... Debit $1400
Inventory Account .... Credit $1400
Notes:
Under perpetual inventory system two journal entries will be record at the time of sale first entry is related to sale means cash received is debited and sale account is credited.second entry related to reduce the balance of inventory.
Add Answer to:
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