Bowie State University-College of Business.. Department of Accounting, Finance and Economics Principles of Accounting I Fall 2016 Under a perpetual inventory system, acquisition of merchandise for resale is debited to the A) Inventory account. Purchases account. C) account. D) Cost of Goods sold account. 2. A buyer would record a payment within the discount period under a perpetual inventory system by crediting A) Accounts Payable. B) Inventory. C) Purchase Discounts. D) Sales Discounts. 3. In a perpetual inventory system, the Cost of Goods Sold account is used A) only when a cash sale of merchandise occurs. B) only when a credit sale of merchandise occurs. C) only when a sale of merchandise occurs. D) whenever there is a sale of merchandise or a return of merchandise sold. 4. The journal entry to record a credit sale is A) Cash Sales Revenue B) Cash Service Revenue C) Accounts Receivable Service Revenue D) Accounts Receivable Sales Revenue 5. The respective normal account balances of Sales Revenue, Sales Returns and Allowances, and Sales Discounts are A) credit, credit, credit. B) debit, credit, debit. C credit, debit, debit. D) credit, debit, credit. 6. On a balance sheet, inventory is classified as A) an intangible asset. B) property, plant, and equipment. C) a current asset. D) a long-term investment