The entry to record a credit purchase when the perpetual method is employed is:

Question

Quizplus · Accepted Answer

In the perpetual method, inventory is updated for every purchase made, and Accounts Payable is increased. Therefore, the entry to record a credit purchase would be to debit Inventory and credit Accounts Payable. Option A is incorrect as it only records the purchase and not the increase in Inventory. Option B is incorrect as it is not necessary to increase Inventory immediately upon purchase. Option D is incorrect as Cost of Goods Sold is only recorded when inventory is sold.

The Entry to Record a Credit Purchase When the Perpetual \quad

The Entry to Record a Credit Purchase When the Perpetual $\quad$