Acompany sold merchandise with a cost of $213 for $440 on account. the seller uses the perpetual inventory system. the entry to record the cost of merchandise sold would include

Explanation:

The journal entry for recording the cost of merchandise sold is shown below:

Cost of goods sold A/c Dr    $213  

     To Merchandise Inventory A/c    $213

(Being cost of merchandise inventory is recorded)

In this question, we record the cost, not the sale value. That's why we consider $213, not $440 amount

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explanation: