Asked by
Jaydyn Montalvo
on Nov 12, 2024
Verified
If the perpetual inventory system is used, an account entitled Cost of Merchandise Sold is included in the general ledger.
Perpetual Inventory System
An accounting method that continuously updates inventory records for each purchase and sale of inventory.
Cost of Merchandise Sold
The total cost incurred to purchase or manufacture the goods sold during a specific period.
- Acquire knowledge on the repercussions of the perpetual inventory system on financial dealings and reports.
- Understand the inclusion of specific transactions in the general ledger under a perpetual inventory system.
Verified Answer
RA
Learning Objectives
- Acquire knowledge on the repercussions of the perpetual inventory system on financial dealings and reports.
- Understand the inclusion of specific transactions in the general ledger under a perpetual inventory system.
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