A company sold merchandise with a cost of $500 for $2,000 on account. The seller uses the perpetual inventory system. The entry to record the sale at the retail sales price is ________.

Question

A company sold merchandise with a cost of​ $500 for​ $2,000 on account. The seller uses the perpetual inventory system. The entry to record the sale at the retail sales price is ​ ________.

GPT-4o mini · Answer

In a perpetual inventory system, when a sale is made, two journal entries are typically required: one to record the sale and another to record the cost of goods sold.

To record the sale at the retail sales price:
You would debit Accounts Receivable (or Cash if it was a cash sale) and credit Sales Revenue.

Journal Entry:
```
Debit: Accounts Receivable (or Cash)   $2,000
Credit: Sales Revenue                   $2,000
```

Thus, the entry to record the sale at the retail sales price is to debit Accounts Receivable for $2,000 and credit Sales Revenue for $2,000.

A company sold merchandise with a cost of​ $500 for​ $2,000 on account. The seller uses the perpetual inventory system. The entry to record the sale at the retail sales price is ​ ________.

A company sold merchandise with a cost of $500 for $2,000 on account. The seller uses the perpetual inventory system. The entry to record the sale at the retail sales price is ________.