Under the perpetual inventory system, the account to which purchased goods are recorded is:

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Quizplus · Accepted Answer

Under the perpetual inventory system, purchased goods are recorded in the Inventory account as a debit, which increases the value of the inventory. The Purchases account is used to record the cost of goods purchased, but only as a temporary account to calculate the cost of goods sold at the end of the period. Cost of Goods Sold is debited only when the goods are sold and the expense is recognized.

Under the Perpetual Inventory System, the Account to Which Purchased