Question

in a perpetual inventory system, the cost of inventory sold is: multiple choice credited to cost of goods sold. not recorded at the time goods are sold. debited to accounts receivable. debited to cost of goods sold.

Answer 1

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

A perpetual inventory system, as opposed to a physical inventory, is a program that continuously assesses your inventory based on your electronic records. This approach begins with a physical count as the baseline and changes based on the receipt of purchases and shipment of goods.

Because it provides for rapid tracking of sales and inventory levels for specific items and helps to prevent stockouts, a perpetual inventory system is better than the more traditional periodic inventory system.

A perpetual inventory system has benefits such as real-time updates and more accurate estimates. You need to be aware of the drawbacks that this approach also has. The shortcomings of a permanent inventory system include lost items, scan errors, theft, hacking, etc.

learn more about the perpetual inventory system here:

https://brainly.com/question/9347174

#SPJ4