When using a periodic inventory system, the Purchases account is debited when goods is acquired.

Name: When using a periodic inventory system, the Purchases account is debited when goods is acquired.
Brand: Quizplus
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Quizplus · Accepted Answer

In a periodic inventory system, the Purchases account is debited when goods are acquired because the inventory is not updated until the end of the period. At the end of the period, the cost of goods sold is calculated and the inventory is adjusted accordingly.

When Using a Periodic Inventory System, the Purchases Account Is