To update the inventory records for the sale of merchandise under a perpetual inventory system, the entry would include a:
A)credit to Inventory.
B)debit to Accounts Payable.
C)debit to Sales Revenue.
D)credit to Cost of Goods Sold.

Question

Quizplus · Accepted Answer

Under a perpetual inventory system, when merchandise is sold, the inventory account is decreased (credited) to reflect the reduction in inventory. This contrasts with a periodic inventory system, where inventory adjustments are made at the end of the accounting period.

To Update the Inventory Records for the Sale of Merchandise