multiple choice question\nclover corporation uses the perpetual inventory system. when clover purchases…

multiple choice question\nclover corporation uses the perpetual inventory system. when clover purchases inventory on account, the entry will include which of the following?\n○ debit purchases\n○ debit sales revenue\n○ debit inventory\n○ debit accounts payable

multiple choice question\nclover corporation uses the perpetual inventory system. when clover purchases inventory on account, the entry will include which of the following?\n○ debit purchases\n○ debit sales revenue\n○ debit inventory\n○ debit accounts payable

Answer

Brief Explanations:

In a perpetual inventory system, when inventory is purchased on account, inventory (an asset) increases and accounts payable (a liability) increases. An increase in an asset is recorded as a debit to the asset account. So, inventory is debited.

Answer:

C. Debit Inventory