When a perpetual inventory system is used, the inventory account is usually a control account maintained in the general ledger.

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In a perpetual inventory system, the inventory account is updated continuously as goods are bought and sold. This account is usually maintained in a separate subsidiary ledger and serves as a detailed record of the movements of inventory. The balance in the subsidiary ledger is then periodically reconciled with the balance in the general ledger control account. Therefore, the inventory account is indeed a control account maintained in the general ledger.

When a Perpetual Inventory System Is Used, the Inventory Account