When using a perpetual inventory method, what account(s) must be updated when a sale is recognized?
A) Cost of Goods Sold
B) Supplies
C) Merchandise Inventory
D) Both A and C are correct.

Question

Quizplus · Accepted Answer

The perpetual inventory method requires updating the Cost of Goods Sold and Merchandise Inventory accounts when a sale is recognized. This reflects the cost of the inventory sold and reduces the inventory balance.

When Using a Perpetual Inventory Method, What Account(s) Must Be