Which of the following accounts is used in the periodic inventory system but not used in the perpetual inventory system?
A)Merchandise Inventory
B)Sales
C)Sales Returns and Allowances
D)Accounts Payable
E)Purchases

Question

Quizplus · Accepted Answer

Purchases account is used in the periodic inventory system to record the cost of merchandise acquired during the accounting period, but it is not used in the perpetual inventory system where the cost of goods sold is calculated continuously by reducing the inventory account for each sale made.

Which of the Following Accounts Is Used in the Periodic