Question

In a perpetual inventory system, the cost of inventory sold is: a. Debited to cost of goods sold. b. Not recorded at the time goods are sold. c. Credited to cost of goods sold. d. Debited to accounts receivable.

Answer 1

Answer: The correct answer is "a. Debited to cost of goods sold."

Explanation:  The perpetual inventory system is a system that keeps a continuous and daily record of inventory movements and the cost of the item sold.

In a perpetual inventory system, the cost of inventory sold is debited to cost of goods sold.