If a perpetual inventory system is used instead of a periodic system,identify the accounts that the Merchandise Inventory account replaces.
A) Purchases,Sales,Freight In
B) Purchases,Purchase Returns and Allowances,Freight In
C) Purchases,Cost of Goods Sold
D) Purchases,Accounts Receivable,Freight In

Question

Quizplus · Accepted Answer

In a perpetual inventory system, the Merchandise Inventory account replaces the Purchases, Purchase Returns and Allowances, and Freight In accounts, as inventory is continuously updated with each transaction.

If a Perpetual Inventory System Is Used Instead of a Periodic