Which of the following is not true of the perpetual inventory method?
A) Purchases are recorded as debits to the inventory account.
B) The entry to record a sale includes a debit to Cost of Goods Sold and a credit to Inventory.
C) After a physical inventory count, Inventory is credited for any missing inventory.
D) Purchase returns are recorded by debiting Accounts Payable and crediting Purchase Returns and Allowances.
Correct Answer:
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