If a company is using a periodic inventory system, which of the following entries is the correct journal entry to record the purchase of $10,000 of merchandise on account?
A. Dr. Inventory $\quad 10,000$
$\quad$Cr. Accounts payable $\quad 10,000$
B. Dr. Inventory$\quad$10,000
$\quad$Cr. Purchases$\quad$10,000
C. Dr. Purchases $\quad 10,000$
$\quad$Cr. Inventory$\quad$10,000
D. Dr. Purchases $\quad 10,000$
$\quad$Cr. Accounts payable$\quad$10,000
A)Option A
B)Option B
C)Option C
D)Option D

Question

If a company is using a periodic inventory system, which of the following entries is the correct journal entry to record the purchase of $10,000 of merchandise on account? 
A. Dr. Inventory $\quad 10,000$
$\quad$Cr. Accounts payable $\quad 10,000$
B. Dr. Inventory$\quad$10,000
$\quad$Cr. Purchases$\quad$10,000
C. Dr. Purchases $\quad 10,000$
$\quad$Cr. Inventory$\quad$10,000
D. Dr. Purchases $\quad 10,000$
$\quad$Cr. Accounts payable$\quad$10,000
A)Option A
B)Option B
C)Option C
D)Option D

Quizplus · Accepted Answer

In a periodic inventory system, purchases are recorded in a Purchases account rather than directly to the Inventory account. The correct entry to record a purchase of merchandise on account is to debit Purchases and credit Accounts Payable.

If a Company Is Using a Periodic Inventory System, Which 10,000\quad 10,00010,000

If a Company Is Using a Periodic Inventory System, Which $\quad 10,000$