Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the purchase on January 18th would include which of the following?
A) A debit to the Purchases account for $7,000.
B) A debit to the Cost of Goods Sold for $7,000.
C) A credit to Inventory for $7,000.
D) A debit to Inventory for $7,000.

Question

Quizplus · Accepted Answer

With a perpetual inventory system, the inventory account is debited instead of the Purchases account. Therefore, the journal entry to record the purchase on January 18th would include a debit to Inventory for $7,000.

Refer to the Information Above