Merchandise purchased for resale under the periodic inventory method is added to:
A)Merchandise Inventory.
B)Supplies.
C)Purchases.
D)Inventory Expense.

Question

Quizplus · Accepted Answer

Purchases is the account used to record merchandise acquired for resale under the periodic inventory system. The other options, Merchandise Inventory and Inventory Expense, are both affected by purchases but are not used to record the initial acquisition of merchandise. Supplies would only be used to record the purchase of office or other non-inventory supplies.

Merchandise Purchased for Resale Under the Periodic Inventory Method Is