A merchandiser purchased inventory on account for $17,000.In a periodic inventory system,the journal entry to record the purchase would include ________.
A) a debit to Purchases for $17,000 and a credit to Accounts Payable for $17,000
B) a debit to Accounts Payable for $17,000 and a credit to Purchases for $17,000
C) a debit to Merchandise Inventory for $17,000 and a credit to Accounts Payable for $17,000
D) a debit to Accounts Payable for $17,000 and a credit to Merchandise Inventory for $17,000

Question

Quizplus · Accepted Answer

In a periodic inventory system, the purchases are recorded as an increase in the Purchases account and an increase in the Accounts Payable account. Therefore, the journal entry to record the purchase would be a debit to Purchases for $17,000 and a credit to Accounts Payable for $17,000.

A Merchandiser Purchased Inventory on Account for $17,000