When goods are bought under the perpetual inventory system, Merchandise Inventory is credited.

Name: When goods are bought under the perpetual inventory system, Merchandise Inventory is credited.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When goods are bought under the perpetual inventory system, Merchandise Inventory is debited for the cost of the goods purchased, not credited. The credit is made to Accounts Payable or Cash, depending on the terms of the purchase.

When Goods Are Bought Under the Perpetual Inventory System, Merchandise