Purchases of merchandise are typically credited to the merchandise inventory account under the perpetual inventory system.

Name: Purchases of merchandise are typically credited to the merchandise inventory account under the perpetual inventory system.
Brand: Quizplus
Rating: 4.9 (61 reviews)

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, purchases of merchandise are typically debited to the Merchandise Inventory account, not credited. This increases the inventory balance to reflect the addition of new stock.

Purchases of Merchandise Are Typically Credited to the Merchandise Inventory