Using the perpetual inventory system,discounts taken on an invoice,such as 3/10,n/30,would be:
A)credited to Inventory.
B)debited to Cost of sales.
C)credited to Cost of sales.
D)debited to Inventory.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, purchase discounts are credited to the Inventory account because they reduce the cost of the inventory purchased.

Using the Perpetual Inventory System,discounts Taken on an Invoice,such as 3/10,n/30,would