In a periodic inventory system,the purchase of inventory is debited to:

Question

Quizplus · Accepted Answer

In a periodic inventory system, purchases of inventory are not immediately recorded in the inventory account. Instead, they are recorded in the purchases account. This account is used to track the total cost of purchases made during the accounting period. At the end of the period, the cost of goods sold is calculated by subtracting the ending inventory from the sum of beginning inventory and purchases. Therefore, the purchase of inventory is debited to the purchases account.

In a Periodic Inventory System,the Purchase of Inventory Is Debited