Under the periodic system of accounting for inventory, the merchandise inventory account is debited for the cost of all merchandise purchased.

Name: Under the periodic system of accounting for inventory, the merchandise inventory account is debited for the cost of all merchandise purchased.
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In the periodic inventory system, purchases are recorded in a separate purchases account, not directly in the merchandise inventory account. The inventory account is updated at the end of the accounting period.

Under the Periodic System of Accounting for Inventory, the Merchandise