Question

If the perpetual inventory records show lower quantities of inventory than the physical count, an explanation of the difference might be unrecorded Sales. Sales discounts. Purchases. This answer is correct. In a perpetual system, purchases are debited directly to inventory at the time of the transaction rather than to a purchases account. A sale requires an immediate credit to inventory. Thus, failure to record a purchase would understate inventory. Purchase discounts.

Answer 1

Answer:

Purchases

Explanation:

In a permanent process, at the time of the transaction or sale, transactions are automatically debited directly to the stock / inventory rather than to a transaction account.

Any transaction demands stock to be instantaneously credited. Inability to report a purchase would therefore underestimate inventory.