Asked by Daniel Yoshuvayev on May 12, 2024
Verified
When the perpetual inventory system is used, the inventory sold is debited to
A) Supplies Expense
B) Cost of Goods Sold
C) Inventory
D) Sales
Perpetual Inventory System
An inventory management system where updates are made continuously to record sales and purchases in real-time.
Inventory Sold
Inventory sold refers to the goods or merchandise a company sells to its customers during a specific period, which were previously part of the company's inventory.
- Acquire knowledge on the recording process for inventory purchases and sales in accounting structures.
Verified Answer
KM
Kidus MengesteabMay 19, 2024
Final Answer :
B
Explanation :
When the perpetual inventory system is used, the cost of goods sold is continuously updated and recorded every time a sale is made. Therefore, the inventory sold should be debited to Cost of Goods Sold.
Learning Objectives
- Acquire knowledge on the recording process for inventory purchases and sales in accounting structures.