In a periodic inventory system, the closing entries include a debit to the Inventory account in an amount that equals the ending inventory, and a credit to the Inventory account in an amount that equals the beginning inventory.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the closing entries adjust the Inventory account to reflect the ending inventory balance, and the beginning inventory is removed from the account to prepare for the next period.

In a Periodic Inventory System, the Closing Entries Include a Debit