Under a Perpetual Inventory System, Which of the Following Entries

question 68

Multiple Choice

Under a perpetual inventory system, which of the following entries would record the purchase of merchandise on credit?

• A) Debit Inventory and credit Accounts Payable
• B) Credit Purchases and Debit Cost of Goods Sold
• C) Debit Purchases and credit Accounts Payable
• D) Credit Sales and debit Accounts Receivable

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Definitions:

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