Using a periodic inventory system, the buyer's journal entry to record the payment for merchandise within the discount period includes a:
A) Credit to Purchase Discounts
B) Debit to Inventory
C) Credit to Accounts Payable
D) Debit to Cost of Goods Sold

Question

Quizplus · Accepted Answer

Under a periodic inventory system, when a buyer pays for merchandise within the discount period, the following entry is made by the buyer:
Accounts payable XXX
$\quad $ $\quad $ $\quad $ $\quad $ Purchase discounts XXX
$\quad $ $\quad $ $\quad $ $\quad $ Cash XXX

Using a Periodic Inventory System, the Buyer's Journal Entry to Record