Which account is not used with a perpetual inventory system?
A) Sales Returns and Allowances
B) Purchase Returns and Allowances
C) Inventory
D) Cost of Goods Sold

Question

Quizplus · Accepted Answer

Purchase Returns and Allowances is typically associated with a periodic inventory system, not a perpetual one. In a perpetual inventory system, inventory and cost of goods sold are updated continuously, making specific accounts for purchases unnecessary.

Which Account Is Not Used with a Perpetual Inventory System