Under a periodic inventory system, the accounts Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight In are found on the balance sheet.

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the accounts Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight In are not found on the balance sheet. Instead, they are temporarily recorded in the Purchases account, which is later closed to the Cost of Goods Sold account at the end of the accounting period.

Under a Periodic Inventory System, the Accounts Purchases, Purchases Returns