Question

Cash) when goods are purchased and debits Cost of Goods Sold and credits __________ __________ when gods are sold, along with the proper sales entry. When the perpetual inventory method is being used, the accountant debits __________ __________ and credits Accounts Payable (or Cash) when goods are purchased and debits Cost of Goods Sold and credits __________ __________ when gods are sold, along with the proper sales entry. When the perpetual inventory method is being used, the accountant debits __________ __________ and credits Accounts Payable (or Cash) when goods are purchased and debits Cost of Goods Sold and credits __________ __________ when gods are sold, along with the proper sales entry.

Answer 1

Answer:

merchandise inventory

Merchandise inventory

Merchandise inventory    

Merchandise inventory

Merchandise inventory    

Merchandise inventory

Explanation:

When the perpetual inventory method is being used, the accountant debits  merchandise inventory and credits Accounts Payable (or Cash) when goods are purchased and debits Cost of Goods Sold and credits merchandise inventory when gods are sold, along with the proper sales entry.

When the perpetual inventory method is being used, the accountant debits  merchandise inventory and credits Accounts Payable (or Cash) when goods are purchased and debits Cost of Goods Sold and credits merchandise inventory when gods are sold, along with the proper sales entry.

When the perpetual inventory method is being used, the accountant debits  merchandise inventory and credits Accounts Payable (or Cash) when goods are purchased and debits Cost of Goods Sold and credits merchandise inventory when gods are sold, along with the proper sales entry.

The cost of each sale transaction ensures that the merchandise inventory account under a perpetual inventory system reflects the updated cost of merchandise available for sale.