When the perpetual inventory system is used, the inventory sold is debited to

Name: When the perpetual inventory system is used, the inventory sold is debited to
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In a perpetual inventory system, Cost of Goods Sold (COGS) is recognized immediately when a sale is made. Therefore, when inventory is sold, the COGS account is debited to reflect the cost of the inventory that was sold. This reduces the value of inventory on the balance sheet and reflects the cost of goods sold on the income statement.

When the Perpetual Inventory System Is Used, the Inventory Sold