In the Adjustments columns of the work sheet, the credit to the Merchandise Inventory account (using the periodic system) represents
A) beginning inventory.
B) ending inventory.
C) the difference between the beginning and the ending inventory.
D) the balance owed to creditors for inventory.
E) net income.

Question

Quizplus · Accepted Answer

In the periodic inventory system, the credit to the Merchandise Inventory account in the Adjustments column represents the beginning inventory, which is adjusted to account for the cost of goods sold calculation.

In the Adjustments Columns of the Work Sheet, the Credit