MANAGEMENT

Detailed explanation-1: -In a perpetual system, two journal entries are required when a business makes a sale: one to record the sale and one to record the cost of the sale. In the first journal entry, Marcia records the revenue from the sale, or the amount she earned from selling her products.

Detailed explanation-2: -Under the perpetual system, two transactions are recorded at the time that the merchandise is sold: (1) the amount of the sale is debited to Accounts Receivable or Cash and is credited to Sales, and (2) the cost of the merchandise sold is debited to the account Cost of Goods Sold and is credited to Inventory.

Detailed explanation-3: -Goods available for sale can be sold and then become cost of goods sold on the income statement. The journal entry for this transaction using a perpetual inventory system includes a debit to Cash of $1, 000 and a credit to Sales revenue of $1, 000; a debit to Cost of goods sold of $600 and a credit to Inventory of $600.

Detailed explanation-4: -Correct answer: Option c) Debit Cost of Merchandise Sold; Credit Merchandise Inventory.