When using a perpetual inventory system,
A)no Purchases account is used.
B)a Cost of Goods Sold account is used.
C)two entries are required to record a sale.
D)all of these.

Question

Quizplus · Accepted Answer

When using a perpetual inventory system, no Purchases account is used as the inventory is constantly updated with each transaction. Instead, a Cost of Goods Sold account is used to record the cost of goods sold. Two entries are required to record a sale, one to decrease the inventory and one to increase the Cost of Goods Sold account. Therefore, all of the options are correct.

When Using a Perpetual Inventory System