Under the perpetual inventory system,discounts taken on an invoice by the buyer would be ________.
A) debited to Merchandise Inventory
B) credited to Merchandise Inventory
C) debited to Cost of Goods Sold
D) credited to Cost of Goods Sold

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, purchase discounts taken by the buyer are credited to the Merchandise Inventory account, reducing the cost of inventory.

Under the Perpetual Inventory System,discounts Taken on an Invoice by the Buyer