Under the perpetual inventory system, in addition to making the entry to record a sale, a company would

A)

debit Inventory and credit Cost of Goods Sold.

B)

debit Cost of Goods Sold and credit Purchases.

C)

debit Cost of Goods sold and credit Inventory.

D)

make no additional entry until the end of the period.

Under a perpetual inventory system

A)

accounting records continuously disclose the amount of inventory.

B)

increases in inventory resulting from purchases are debited to purchases.

C)

there is no need for a year-end physical count.

D)

the account purchase returns and allowances is credited when goods are returned to vendors.

Question

	Under the perpetual inventory system, in addition to making the entry to record a sale, a company would
	A)	debit Inventory and credit Cost of Goods Sold.
	B)	debit Cost of Goods Sold and credit Purchases.
	C)	debit Cost of Goods sold and credit Inventory.
	D)	make no additional entry until the end of the period.

Under a perpetual inventory system
	A)	accounting records continuously disclose the amount of inventory.
	B)	increases in inventory resulting from purchases are debited to purchases.
	C)	there is no need for a year-end physical count.
	D)	the account purchase returns and allowances is credited when goods are returned to vendors.

Accepted Answer

The Answer is in the image, click to view ...

Question