Under the perpetual inventory system
A)the cost of each item is recorded in the Merchandise Inventory account when it is purchased.
B)when an inventory item is sold,its cost is transferred to the Sales Revenue account.
C)the balance of the Merchandise Inventory account is only accurate on the balance sheet date.
D)All of these choices.

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, the cost of each item is recorded in the Merchandise Inventory account when it is purchased. This system continuously updates inventory records, including purchases and sales.

Under the Perpetual Inventory System