#1-3

1. In a perpetual inventory system a. Merchandise Inventory is debited every time inventory is purchased b. cost of Goods Sold is debited every time inventory is sold c. a physical inventory is taken at least annually d. All of the above. 2. Under the perpetual inventory system, the purchase of merchandise is recorded by a debit to: a. Merchandise Inventory; credit to Accounts Payable or Cash b. Cost of Goods Sold; credit to Accounts Payable c. Purchases; credit to Accounts Payable d. Accounts Payable; credit to Purchases 3. Individual inventory items are tracked in the a. accounts receivable ledger b. inventory ledger c. accounts payable ledger d. purchases journal