AccountingforMerchandiseOperations.pptVIP

Jan. 3 Cash 1,800 Sales 1,800 This entry is made whether the company uses the periodic or perpetual system. Jan. 3 Cost of Merchandise Sold 1,200 Merchandise Inventory 1,200 An additional entry is made if the firm uses a perpetual inventory system. During January Online Solutions sold merchandise costing $68,000 to American Express customers for $100,000. Online Solutions uses a perpetual inventory. Transactions involving American Express are recorded as sales on account. Jan. 31 Accounts Receivable— American Express 100,000 Sales 100,000 31 Cost of Merchandise Sold 68,000 Mercha