Our company sold merchandise on account with a cost of $700 for $1,000. Our company uses a perpetual inventory system. What account and amount would we credit to record the sales revenue?

The journal entry to record the sales revenue under the perpetual inventory method is shown below:

Accounts receivable A/c Dr $1,000

To Sales revenue A/c $1,000

(Being the sales revenue is recorded)

We simply debited the account receivable and credited the sales revenue for $1,000 each as both the accounts are increased