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26 August, 14:38

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?

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  1. 26 August, 15:10
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    The inventory should be registered as $2000

    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
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