Under a periodic inventory system, acquisition of merchandise is debited to the

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Under a periodic inventory system, the Purchases account is debited for the cost of merchandise acquired during the period. The Inventory account is updated at the end of the period by taking into account the beginning inventory, adding purchases and then subtracting the ending inventory to determine the cost of goods sold. Accounts Payable will be credited when the payment for the purchases is made.

Under a Periodic Inventory System, Acquisition of Merchandise Is Debited