D. A-L + OE = U. In a perpetual inventory system, the cost of inventory sold is: Select one: A. Debited to cost of goods sold. B. Credited to cost of goods sold. C. Debited to accounts receivable. D. Not recorded at the time goods are sold. Prepayments occur when: Select one: A. Sales are delayed pending credit approval. B. Manufactured goods await quality control inspections. C. Customers are unable to pay the full amount due when goods are delivered. D. Cash flow precedes expense recognition