To update the inventory records for the sale of merchandise on account under a periodic inventory system, the entry would include:
A)a credit to Inventory.
B)a debit to Accounts Payable.
C)no entry as inventory records are not updated at the time of sale.
D)a debit to Cost of Goods Sold.

Question

Quizplus · Accepted Answer

Under a periodic inventory system, inventory records are not updated at the time of each sale. Instead, the inventory is physically counted at the end of the accounting period, and the cost of goods sold is calculated based on this physical inventory count.

To Update the Inventory Records for the Sale of Merchandise