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Correct answer is option d and e . Selling inventory for cash,
Selling inventory on account will be required for a perpetual inventory system.
The cost of the goods sold is credited to the inventory account at the time of each sale when using the inventory system, which subtracts purchases from the inventory account. As a result, the inventory account's balance is constantly shifting. In this system, the general ledger account for cost of goods sold is. Permanent inventory is a continuous accounting approach that, without the need for physical inventories, continuously records inventory changes to reflect actual stock properly in the book inventory. Scanners and POS systems are input tools used in warehouses to track ongoing inventory.
The retail industry and warehouses are using perpetual inventory practices more frequently. Perpetual inventory leads to overstatements, also referred to as phantom inventory.
You credit the finished goods inventory and debit the cost of goods sold. The items are transferred from inventory to costs in this way.
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