In a periodic inventory system, the closing process includes crediting the following accounts to bring their balances to zero:
A)Cost of Goods Sold and Freight In.
B)Purchases and Freight In.
C)Purchase Discounts and Sales Discounts.
D)Purchase Returns and Allowances and Purchase Discounts.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the Purchases and Freight In accounts are temporary accounts that need to be closed to zero at the end of the period.

In a Periodic Inventory System, the Closing Process Includes Crediting