On January 5, EMG Company purchased 11 all-terrain vehicles at a cost of $7,200 each. On February 12, they sold 8 vehicles for $9,200 per unit. If EMG uses a perpetual inventory system, the journal entry to record the sale on February 12th would include all of the following except:

Question

Quizplus · Accepted Answer

A perpetual inventory system does not use a Purchases account; instead, it directly adjusts the Inventory account for purchases and sales of inventory.

On January 5, EMG Company Purchased 11 All-Terrain Vehicles at a Cost