Under the perpetual inventory system, when a sale is made, both the sale and cost of merchandise sold are recorded.

Question

Quizplus · Accepted Answer

This statement is correct. Under perpetual inventory system, every sale results in the recording of both sale and cost of merchandise sold. This is because the inventory is constantly updated and the cost of goods sold is calculated using the actual cost of merchandise sold.

Under the Perpetual Inventory System, When a Sale Is Made