Using a perpetual inventory system, how should a business record the sale of $520 inventory for $950 on account? 

1. Inventory 520 Cost of goods sold 520 Sales revenue 950 Accounts receivable 950 

2. Accounts receivable 950 Sales revenue 950 Cost of goods sold 520 Inventory 520 

3. Inventory 520 Profit 430 Sales revenue 950 

4. Accounts receivable 950 Sales revenue 520 Profit 430

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct entry for recording the sal... View the full answer