Under a perpetual inventory system, acquisition of merchandise for resale is debited to the
A) Merchandise Inventory account.
B) Purchases account.
C) Supplies account.
D) Cost of Goods Sold account.

Question

Quizplus · Accepted Answer

Under a perpetual inventory system, the acquisition of merchandise for resale is recorded by debiting the Merchandise Inventory account, as this system continuously updates inventory records with each purchase and sale.

Under a Perpetual Inventory System, Acquisition of Merchandise for Resale