When using the periodic inventory system,the Merchandise Inventory account is ________.
A) not used
B) never used when recording purchase discounts, or returns of inventory
C) replaced on the balance sheet with the Purchases account
D) updated after each sale

Question

Quizplus · Accepted Answer

In a periodic inventory system, the Merchandise Inventory account is not updated for each transaction like purchase discounts or returns; instead, it is adjusted at the end of the accounting period.

When Using the Periodic Inventory System,the Merchandise Inventory Account Is