If the perpetual inventory records show lower quantities of inventory than the physical count, an explanation of the difference might be unrecorded Sales. Sales discounts. Purchases. This answer is correct. In a perpetual system, purchases are debited directly to inventory at the time of the transaction rather than to a purchases account. A sale requires an immediate credit to inventory. Thus, failure to record a purchase would understate inventory. Purchase discounts.

Question

Imani Smith

Business

6 August, 22:44

If the perpetual inventory records show lower quantities of inventory than the physical count, an explanation of the difference might be unrecorded Sales. Sales discounts. Purchases. This answer is correct. In a perpetual system, purchases are debited directly to inventory at the time of the transaction rather than to a purchases account. A sale requires an immediate credit to inventory. Thus, failure to record a purchase would understate inventory. Purchase discounts.

+3

Answers (1)

Know the Answer?

Veronica Castro · Answer 1

Purchases

Explanation:

In a permanent process, at the time of the transaction or sale, transactions are automatically debited directly to the stock / inventory rather than to a transaction account.

Any transaction demands stock to be instantaneously credited. Inability to report a purchase would therefore underestimate inventory.