A company using the perpetual inventory system records the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, the cost of goods sold and inventory are updated continuously as sales occur. The sales journal is used to record sales transactions, and it includes columns for recording the cost of goods sold and the decrease in inventory.

A Company Using the Perpetual Inventory System Records the Increase