Under a periodic inventory system acquisition of merchandise is debited to the
A) Inventory account.
B) Cost of Goods Sold account.
C) Purchases account.
D) Accounts Payable account.

Question

Quizplus · Accepted Answer

Under a periodic inventory system, purchases of merchandise are recorded in the Purchases account until the end of the accounting period when the balance is transferred to the Cost of Goods Sold account through an adjusting entry. Therefore, the correct answer is C.

Under a Periodic Inventory System Acquisition of Merchandise Is Debited