When using a periodic inventory method, what account is increased when you buy merchandise inventory?

Name: When using a periodic inventory method, what account is increased when you buy merchandise inventory?
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Question

Quizplus · Accepted Answer

Under the periodic inventory method, the Purchases account is increased when merchandise inventory is bought. This account is used to track the cost of inventory purchased during the period, which is then used to calculate the cost of goods sold at the end of the accounting period.

When Using a Periodic Inventory Method, What Account Is Increased