Seifert Company uses the periodic inventory system.At the end of the accounting period,on December 31,ending inventory is $18,000 and beginning inventory is $7,000.Purchases for the period are $102,000.Which of the following journal entries did Seifert Company prepare on December 31?

Question

Quizplus · Accepted Answer

Under the periodic inventory system, purchases are recorded in the Purchases account throughout the period. At the end of the period, the Cost of Goods Sold is calculated and the Purchases account is closed to the Cost of Goods Sold. Therefore, the correct entry is to debit Cost of Goods Sold and credit Purchases for the total purchases amount.

Seifert Company Uses the Periodic Inventory System