Perpetual Inventory
Illustrative Entry
Entry to record purchase of inventory:
| 12-12-X1 |
Inventory |
3,000 |
||
| Accounts Payable |
3,000 |
|||
| Purchased $3,000 of inventory on account |
Entries to record sale of inventory:
| 12-21-X1/ |
Accounts Receivable |
5,000 |
||
| Sales |
5,000 |
|||
| Sold merchandise on account |
| 12-21-X1 |
Cost of Goods Sold |
3,000 |
||
| Inventory |
3,000 |
|||
| To record the cost of merchandise sold |