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

Question

Quizplus · Accepted Answer

In the perpetual inventory system, purchases are recorded directly in the Inventory account, so the correct entry to record a credit purchase is to debit Inventory and credit Accounts Payable, as in choice C. Option A is incorrect because it omits the Inventory account, which is directly affected in the perpetual system, and incorrectly debits Purchases instead. Option B is incorrect because it credits Inventory instead of Accounts Payable, and would only be used for a cash purchase. Option D is incorrect because it debits Cost of Goods Sold, which is not appropriate for a purchase transaction.

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

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