If a company uses the periodic inventory system,purchases of merchandise are
A) debited to Merchandise Inventory.
B) credited to Merchandise Inventory.
C) debited to Purchases.
D) credited to Sales.

Question

Quizplus · Accepted Answer

In the periodic inventory system, purchases of merchandise are debited to the Purchases account rather than Merchandise Inventory. The Merchandise Inventory account is only updated at the end of the accounting period using a physical count of inventory on hand.

If a Company Uses the Periodic Inventory System,purchases of Merchandise