FAD Company uses a periodic inventory system and its inventory records for the period contain the following information: The journal entry necessary at the end of the period to transfer beginning inventory and net purchases to cost of goods sold will include which of the following?
A)Credit Inventory for $6,250.
B)Debit Purchases for $11,250.
C)Debit Inventory for $6,250.
D)Debit Cost of Goods Sold for $11,250.

Question

FAD Company uses a periodic inventory system and its inventory records for the period contain the following information:  The journal entry necessary at the end of the period to transfer beginning inventory and net purchases to cost of goods sold will include which of the following?
A)Credit Inventory for $6,250. 
B)Debit Purchases for $11,250. 
C)Debit Inventory for $6,250. 
D)Debit Cost of Goods Sold for $11,250.

Quizplus · Accepted Answer

The end-of-period adjustment to transfer beginning inventory and net purchases to cost of goods sold includes a debit to Cost of goods sold and a credit to Inventory and Purchases.

FAD Company Uses a Periodic Inventory System and Its Inventory