Under a perpetual inventory system, acquisition of merchandise for resale is debited to
A)the Inventory account.
B)the Purchases account.
C)the Supplies account.
D)the Cost of Goods Sold account.

Question

Quizplus · Accepted Answer

Under a perpetual inventory system, the Inventory account is directly debited when merchandise is acquired for resale, as it continuously updates inventory records.

Under a Perpetual Inventory System, Acquisition of Merchandise for Resale