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, Cost of Goods Sold C)Purchases, Accounts Receivable, Freight In D)Purchases, Purchase Returns and Allowances, Freight In

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In a perpetual inventory system, the Merchandise Inventory account is continuously updated for purchases, purchase returns and allowances, and freight in costs, replacing the need for separate accounts for these items as used in a periodic system.

If a Perpetual Inventory System Is Used Instead of a Periodic