Under a periodic inventory system,
A)purchases of inventory are debited to the Purchases account.
B)freight incurred on merchandise purchases by the buyer should be debited to the Inventory account.
C)purchases of merchandise are usually credited to the Purchases account.
D)freight incurred on merchandise sales by the seller should be debited to the Freight In account.

Question

Quizplus · Accepted Answer

Under a periodic inventory system, purchases of inventory are recorded by debiting the Purchases account, rather than directly adjusting the Inventory account at the time of each purchase. This approach is used to simplify the accounting process, with the Inventory account being updated at the end of the accounting period based on a physical count.

Under a Periodic Inventory System