Under the perpetual inventory system,in addition to making the entry to record a sale,a company would
A)record an increase in inventory corresponding to the amount of the sale.
B)record a decrease in inventory and an increase in cost of goods sold for the cost of the merchandise sold.
C)record an increase in inventory corresponding to the cost of the inventory.
D)make no additional entry until the end of the period.

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, when a sale is made, the company records not only the sale but also the cost of the goods sold. This involves decreasing the inventory account and increasing the cost of goods sold account to reflect the cost of the merchandise that was sold.

Under the Perpetual Inventory System,in Addition to Making the Entry