Under a periodic inventory system, the sale of merchandise on credit requires a credit to
A) Merchandise Inventory.
B) Sales Revenue.
C) Accounts Receivable.
D) Cash.

Question

Quizplus · Accepted Answer

Under a periodic inventory system, when merchandise is sold on credit, Sales Revenue is credited to record the income from the sale. Accounts Receivable is debited to record the amount owed by the customer, not credited.

Under a Periodic Inventory System, the Sale of Merchandise on Credit