In a periodic inventory system, Purchases, Freight-In, and Purchases Returns and Allowances accounts are used.

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In a periodic inventory system, transactions related to inventory purchases, freight costs, and returns or allowances are recorded in separate accounts (Purchases, Freight-In, and Purchases Returns and Allowances) to track the cost of inventory before it is periodically adjusted to reflect the cost of goods sold and ending inventory.

In a Periodic Inventory System, Purchases, Freight-In, and Purchases Returns