When using a perpetual inventory system, the journal entry to record the cost of goods sold is:

A) debit Cost of Goods Sold; credit Sales
B) debit Cost of Goods Sold; credit Inventory
C) debit Inventory; credit Cost of Goods Sold
D) No journal entry is made to record the cost of goods sold.

Perpetual Inventory System

An accounting method where inventory records are continuously updated to reflect sales, purchases, and stock levels in real-time.

Cost of Goods Sold

A financial metric that represents the direct costs attributable to the production of goods sold by a company.

Inventory

The cumulative quantity of products and materials a company possesses for the purpose of selling or utilizing in manufacturing processes.