Perpetual Trading Pty. Limited uses the perpetual inventory method to account for its inventories. The business makes a sale of 1,000 units sold for cash @ $200 each (plus GST). Each unit sold has a cost of $100 (excluding GST). The journal entry to record the sale and cost of goods sold (COGS) is:
Select one:
a. Debit Inventory Control $200,000
Debit GST Paid $20,000
Credit Cash $220,000
b. Debit Cash $220,000
Credit Sales $200,000
Credit GST Collected $20,000
Debit COGS $100,000
Credit Inventory Control $100,000
c. Debit Accounts Receivable control $220,000
Credit Sales $100,000
Credit COGS $100,000
Credit GST Collected $20,000
d. Debit Cash $220,000
Credit Inventory Control $220,000
Debit COGS $100,000
Credit Inventory Control $100,000
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