A merchandiser purchased inventory on account for $10,000.Under the periodic inventory system,the journal entry to record the purchase would include ________.

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the purchases are recorded by debiting the Purchases account and crediting the Accounts Payable account. This is because the Purchases account represents the cost of goods purchased during the period, while the Accounts Payable account represents the amount owed to the supplier for the purchases made on credit.

A Merchandiser Purchased Inventory on Account for $10,000