Under the periodic inventory system,which of the following entries is prepared at the end of the accounting period?

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the cost of goods sold is determined at the end of the accounting period. The entry to record the cost of goods sold is a debit to Cost of Goods Sold and a credit to Purchases. Additionally, the ending inventory needs to be adjusted by taking into consideration the beginning inventory, purchases, and cost of goods sold. Therefore, the entry to adjust inventory is a debit to Cost of Goods Sold and a credit to Inventory. Both options B and C are correct and necessary under the periodic inventory system.

Under the Periodic Inventory System,which of the Following Entries Is