Inventory and COGS exercises

Practice merchandise bookkeeping with stated methods.

Item 1 of 21

Freeintermediate

Sale of goods on account (perpetual)

On Mar 11, 2026, Little Fern Online Shop sells goods on account for $950.00. The goods cost $570.00. It uses a perpetual system. Record both effects in one compound entry.

Entry date

Little Fern Online Shop · accrual basis · USD

Journal entry lines
Account	Debit	Credit


Totals	$0.00	$0.00

Enter amounts to see totals.

Quick lesson

Perpetual inventory basics

In a perpetual system, Inventory is updated with every purchase and sale. A sale has two parts: revenue at selling price, and cost of goods sold at cost. This course states the system and costing method in every inventory exercise.

A perpetual system gives up-to-date inventory and cost of goods sold, but it still needs periodic counts to catch shrinkage and errors. Each sale is two entries in one: revenue at selling price and cost at inventory cost. Purchase-related costs such as freight-in are added to inventory when the task says so.

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How grading works

Answers are checked on our server against a fixed rubric: accounts, debit or credit side, amounts to the cent, and dates. Hints start with the smallest useful clue. Revealing the solution is allowed, but mastery requires a later unassisted success.