If a business uses the periodic inventory system,the sales journal will ________.
A) record both the cash and credit sales
B) include a Purchase DR and Account Receivable CR column
C) exclude the Accounts Receivable DR and Sales Revenue CR column
D) exclude the Cost of Goods Sold DR and Merchandise Inventory CR column

Question

Quizplus · Accepted Answer

In a periodic inventory system, the Cost of Goods Sold (COGS) and Merchandise Inventory are not updated at the time of each sale. Instead, these accounts are adjusted at the end of the accounting period through a physical inventory count. Therefore, the sales journal, which records sales transactions, would exclude the COGS DR and Merchandise Inventory CR entries, as these are only calculated and recorded at the end of the period when inventory is physically counted.

If a Business Uses the Periodic Inventory System,the Sales Journal