If you're using the perpetual inventory system, what is the journal entry for selling goods on credit?
submitted by John

LeRoy

Debit Accounts Receivable, Credit Sales Revenue.

You'll want to debit Accounts Receivable for the amount of the sale. This shows how much the customer owes. Credit Sales Revenue to show the income earned. You also need to record the cost of goods sold. You'll need to debit COGS and credit Inventory, because your inventory goes down when you move a product.