Under a periodic inventory system, which of the following entries would record the purchase of merchandise on credit?

Question

Quizplus · Accepted Answer

Under a periodic inventory system, purchases of merchandise are recorded as a debit to the Purchases account and a credit to Accounts Payable. Option A is incorrect because it assumes the inventory has already been recorded, which is not the case. Option B is incorrect because it records a sale on credit, not a purchase. Option D is incorrect because it debits Cost of Goods Sold, which is only done at the end of the period, not at the time of purchase.

Under a Periodic Inventory System, Which of the Following Entries