Question 5: Which of the following is a characteristic of a perpetual inventory system? a. Inventory purchases are debited to a Purchases account b. Inventory records are not kept for every item. c. Cost of goods sold is determined as the amount of purchases less the change in inventory Cost of goods sold is recorded with each sale. d. Question 6: If the beginning inventory for 2017 is overstated, the effects of this error on cost of goods sold for 2017, net income for 2017, and assets at December 31,2018, respectively, are b. Understatement, overstatement, overstatement c. Understatement, overstatement, no effect. d Overstatement, understatement, no effect