Under the periodic inventory method, the ending inventory is adjusted by debiting Income Summary and crediting Merchandise Inventory.

Name: Under the periodic inventory method, the ending inventory is adjusted by debiting Income Summary and crediting Merchandise Inventory.
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Quizplus · Accepted Answer

Under the periodic inventory method, the ending inventory is adjusted by debiting Merchandise Inventory and crediting Income Summary or directly affecting the Purchases or Inventory account, not the other way around.

Under the Periodic Inventory Method, the Ending Inventory Is Adjusted