Question

Ace Bonding Company purchased inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. How should Ace record the purchase using a perpetual inventory system?

Answer 1

The inventory should be registered as $2000

Step-by-step explanation:

The inventory should be registered by it is acquisition cost. Once sold Inventory will go down bt $2000 and COGS will rise by $2000