Asked on 17 Apr 2020

Which statement is true when recording the sale of goods for cash in a perpetual inventory system?

a. Only one journal entry is necessary. It will record the cost of goods sold and reduce inventory.
b.Two journal entries are necessary: one to record the receipt of cash and reduction of inventory, and one to record the cost of goods sold and sales revenue.
c. Only one journal entry is necessary. It will record the receipt of cash and sales revenue.
d. Two journal entries are necessary: one to record the receipt of cash and sales revenue, and one to record the cost of goods sold and to reduce inventory.

Answered on 17 Apr 2020

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