In a perpetual inventory system,at the time of a sale the cost of inventory sold is:

Question

Quizplus · Accepted Answer

In a perpetual inventory system, the cost of inventory sold is debited (increased) to the cost of goods sold account and credited (decreased) to the inventory account at the time of the sale. This allows for real-time tracking of inventory costs and accurate calculation of gross profit. Therefore, the correct choice is C, which states that the cost of goods sold is debited to the Cost of Goods Sold account.

In a Perpetual Inventory System,at the Time of a Sale