Using a perpetual inventory system,the purchase of inventory is recorded with a debit to the Purchases account,which is a temporary account closed to cost of goods sold at the end of the period.

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In a perpetual inventory system, the purchase of inventory is recorded with a debit to the Inventory account, not the Purchases account. The Purchases account is used in a periodic inventory system.

Using a Perpetual Inventory System,the Purchase of Inventory Is Recorded