When using a perpetual inventory system,

no Purchases account is used.

a Cost of Goods Sold account is used.

two entries are required to record a sale.

All of these answer choices are correct.

If the beginning inventory for 2020 is overstated, the effects of this error on cost of goods sold for 2020, net income for 2020, and assets at December 31, 2021, respectively, are

overstatement, understatement, overstatement.

overstatement, understatement, no effect.

understatement, overstatement, overstatement.

understatement, overstatement, no effect.