When merchandise is purchased, the entry in the vouchers register is a debit to Merchandise Inventory and a credit to Vouchers Payable. The company uses the periodic method.

Question

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In the periodic inventory system, purchases are recorded in a Purchases account, not Merchandise Inventory. The entry would be a debit to Purchases and a credit to Vouchers Payable.

When Merchandise Is Purchased, the Entry in the Vouchers Register