Which of the following accounts is never debited or credited during the accounting period?
A) Owner's Capital
B) Purchases Returns and Allowances
C) Merchandise Inventory
D) Interest Income

Question

Quizplus · Accepted Answer

Merchandise Inventory is an asset account that is only adjusted at the end of the accounting period through physical inventory count or estimates, but it is never debited or credited during the accounting period. Owner's Capital and Purchases Returns and Allowances are affected by transactions and can be debited or credited. Interest Income can also be credited when earned.

Which of the Following Accounts Is Never Debited or Credited