Blue Sky, Inc. sold 500 units of inventory at $25 per unit for cash. The company uses the perpetual inventory system. The cost of the units sold was $10 per unit. Provide the journal entries to record the sale
What will be an ideal response
Cash 12,500
Sales Revenue 12,500
Cost of Goods Sold 5,000
Merchandise Inventory 5,000
Note:
Sales Revenue = 500 units x $25 per unit = $12,500
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