On March 3, Bluebird Sales makes $4,350 in cash sales of general merchandise that has a cost of $1,512. Bluebird uses a perpetual inventory system.
(a) Journalize the sale.
(b) Journal the cost of merchandise sold.

Perpetual Inventory

An inventory management system where updates are made continuously as inventory items are bought and sold.

Cash Sales

Transactions in which the buyer pays for a good or service at the time of the sale with cash or its equivalent.

Cost of Merchandise

The total expense incurred by a business to buy or produce the goods it has sold during a specific period.