Under the Perpetual Inventory System

question 108

Multiple Choice

Under the perpetual inventory system

• A)the cost of each item is recorded in the Merchandise Inventory account when it is purchased.
• B)when an inventory item is sold,its cost is transferred to the Sales Revenue account.
• C)the balance of the Merchandise Inventory account is only accurate on the balance sheet date.
• D)All of these choices.

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