When the perpetual inventory system is used,where can the best estimate of the amount of inventory on hand be found?
A)On the previous period's balance sheet
B)In the Inventory account in the general ledger
C)By applying the gross margin method
D)By subtracting sales for the period from the beginning Inventory account balance

Question

Quizplus · Accepted Answer

In a perpetual inventory system,the balance in the inventory general ledger account should provide the best estimate of inventory on hand.The gross margin method should only be used if a book inventory and a physical inventory are unavailable.

When the Perpetual Inventory System Is Used,where Can the Best