When the perpetual inventory system is used, the inventory sold is debited to a. Supplies Expense b. Cost of Goods Sold c. Sales d. Inventory

Question

Kristian Graham

Business

29 October, 01:13

When the perpetual inventory system is used, the inventory sold is debited to a. Supplies Expense b. Cost of Goods Sold c. Sales d. Inventory

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Answers (1)

Know the Answer?

Jakayla Oneal · Answer 1

The answer is D. Inventory account.

Explanation:

Perpetual inventory method is very useful as it is updated daily and gives a real-time insight into the stocks unlike in the periodic inventory system where you calculate the stock at the end of a certain period.