13 Using a perpetual inventory sy account includes a stem th

13. Using a perpetual inventory sy account includes a stem, the entry to record the sale of merchandise on A. debit to Sales B. debit to Merchandise Inventory C. credit to Merchandise Inventory D. credit to Accounts Receivable E. credit to Cash.

Solution

The correct answer is option C. Credit to merchandise inventory

We will pass two journal entries one for recording of sale and another is recoding cost of merchandise sold to customers

First entry.For record of sale of merchandise on account

Account receivables ( debit)

To sales revenue ( credit)

Second entry. For  record cost of merchandise

Cost of goods sold ( debit)

To merchandise inventory ( credit)

So option c. credit to merchandise is correct answer