A merchandiser purchased inventory on account for $18,000.Under the periodic inventory system,the journal entry to record the purchase would include ________.
A)a debit to Purchases for $18,000 and a credit to Accounts Payable for $18,000
B)a debit to Accounts Payable for $18,000 and a credit to Purchases for $18,000
C)a debit to Merchandise Inventory for $18,000 and a credit to Accounts Payable for $18,000
D)a debit to Accounts Payable for $18,000 and a credit to Merchandise Inventory for $18,000

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the purchase of inventory on account is recorded by debiting the Purchases account and crediting the Accounts Payable account.

A Merchandiser Purchased Inventory on Account for $18,000