Questions: Question 4 of 20 View Policies Show Attempt History Current Attempt in Progress * Your answer is incorrect. Under a perpetual inventory system, acquisition of merchandise for resale is debited to the Supplies account. the Purchases account. the Inventory account. the Cost of Goods Sold account. Save for Later Attempts: 1 of

The answer is the third one: the Inventory account.

Explanation for each option:

1. The Supplies account: This is incorrect. The Supplies account is typically used for items that are consumed in the course of business operations, not for merchandise intended for resale.

2. The Purchases account: This is incorrect in the context of a perpetual inventory system. The Purchases account is used in a periodic inventory system, where purchases are recorded separately and inventory levels are updated at the end of the accounting period.

3. The Inventory account: This is correct. In a perpetual inventory system, all purchases of merchandise for resale are directly debited to the Inventory account. This system continuously updates inventory records for each purchase and sale.

4. The Cost of Goods Sold account: This is incorrect. The Cost of Goods Sold account is used to record the cost of inventory that has been sold, not the acquisition of inventory.

In summary, under a perpetual inventory system, the acquisition of merchandise for resale is debited to the Inventory account.