margot inc, which uses the perpetual inventory system, purchases 500 units of inventory to be held for resale. margot should debit the purchase to:

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27-06-2022
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margot inc, which uses the perpetual inventory system, purchases 500 units of inventory to be held for resale. margot should debit the purchase to:

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azikennamdi azikennamdi · Answer 1 · 2022-06-28T14:38:23+02:00

Because Margot Inc, uses the perpetual inventory system, purchases 500 units of inventory to be held for resale. Margot should debit the purchase to Inventory.

What is the perpetual inventory system?

The perpetual inventory system is an application that enable the entity to estimate inventory continuously using electronic records rather than a physical inventory.

It is thus correct to state that Margot should debit the purchase to Inventory.

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