Using a periodic inventory system, the buyer's journal entry to record the purchase of merchandise on credit includes a:
A) Debit to Purchases
B) Debit to Inventory
C) Debit to Freight In
D) Debit to Cost of Goods Sold

Question

Quizplus · Accepted Answer

Under a periodic inventory system, when a buyer purchases merchandise on credit, the following entry is made by the buyer:
Purchases XXX
$\quad $ $\quad $ $\quad $ Accounts payable XXX

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