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

Question

Quizplus · Accepted Answer

Under a perpetual inventory system, the acquisition of merchandise for resale is recorded by debiting the Merchandise Inventory account. This system continuously updates inventory records, including purchases.

Under a Perpetual Inventory System, Acquisition of Merchandise for Resale