When recording the sale of merchandise inventory,using a periodic inventory system,________.
A) a running record of merchandise inventory is maintained during the accounting period
B) the Sales Revenue account is credited only as an adjusting entry because sales information is not needed during the accounting period
C) sales discounts are not recorded
D) there is no need to record an entry to the Merchandise Inventory and the Cost of Goods Sold accounts

Question

Quizplus · Accepted Answer

In periodic inventory system, there is no need to record an entry to Merchandise Inventory and Cost of Goods Sold accounts at the time of sale. The inventory and cost of goods sold accounts are adjusted at the end of the accounting period.

When Recording the Sale of Merchandise Inventory,using a Periodic Inventory