Asked by Mackenzie Vatter on May 06, 2024
Verified
In a perpetual inventory system, Merchandise Inventory is credited when recording the cost of a sale.
Perpetual Inventory System
A method of inventory management where updates to inventory levels are made in real-time following every sale or purchase.
Merchandise Inventory
Goods that a retail merchandising business holds for sale to customers.
- Distinguish among the accounts affected in the perpetual inventory system.
Verified Answer
KD
Kortese DelaneyMay 12, 2024
Final Answer :
True
Explanation :
In a perpetual inventory system, when a sale is made, the cost of the goods sold is recorded by crediting Merchandise Inventory and debiting Cost of Goods Sold to reflect the reduction in inventory.
Learning Objectives
- Distinguish among the accounts affected in the perpetual inventory system.