Under a periodic inventory system, the Purchases account accumulates the cost of the inventory acquired during the period.

Question

Quizplus · Accepted Answer

Under a periodic inventory system, the cost of inventory is only recorded at the end of the period through an adjustment to the Purchases account based on a physical count of the inventory. Therefore, the Purchases account accumulates the cost of the inventory acquired during the period.

Under a Periodic Inventory System, the Purchases Account Accumulates the Cost