Which of the following is true under the perpetual inventory system?
A) A separate account for purchases is required.
B) Cost of goods sold cannot be determined unless a physical inventory is taken.
C) One entry is required to record a sales return.
D) Two entries are required to record a sale.

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, two entries are required to record a sale: one to record the revenue and another to record the cost of goods sold and update inventory.

Which of the Following Is True Under the Perpetual Inventory