Under the periodic inventory system inventory purchased is debited to which account?

Question

Quizplus · Accepted Answer

Under the periodic inventory system, inventory purchased is debited to the Purchases account. This is because the cost of goods purchased is added to the beginning inventory to determine the cost of goods available for sale. The cost of goods sold is then calculated by subtracting ending inventory from the cost of goods available for sale.

Under the Periodic Inventory System Inventory Purchased Is Debited to Which