In a periodic inventory system
A)The cash disbursements journal tracks purchase discounts.
B)The cash receipts journal tracks sales returns and allowances taken.
C)The sales journal tracks decreases in inventory.
D)The cash receipt journal tracks cost of goods sold.
E)The sales journal tracks merchandise inventory bought.

Question

Quizplus · Accepted Answer

In a periodic inventory system, purchase discounts are recorded in the cash disbursements journal. The other options listed do not accurately reflect the purpose of the various journals in a periodic inventory system.

In a Periodic Inventory System