In a periodic inventory system, the cost of purchases is recognized as
A) an increase in an asset account.
B) an increase in the inventory account.
C) the only part of the calculation of cost of goods sold.
D) an integral part of the calculation of cost of goods sold.

Question

Quizplus · Accepted Answer

In a periodic inventory system, purchases are recorded in a purchases account and are used to calculate the cost of goods sold at the end of the period.

In a Periodic Inventory System, the Cost of Purchases Is