Under a perpetual inventory system, purchase of inventory is recorded as a debit to the
A)Supplies account.
B)Purchases account.
C)Inventory account.
D)Cost of Goods Sold account.

Question

Quizplus · Accepted Answer

Under a perpetual inventory system, the purchase of inventory is recorded as a debit to the Inventory account. This system continuously updates inventory records, including purchases, sales, and returns.

Under a Perpetual Inventory System, Purchase of Inventory Is Recorded