The entry to record a credit purchase when the periodic inventory method is employed will include a:
A) debit to inventory.
B) credit to purchases.
C) debit to purchases.
D) debit to cost of goods sold.

Question

Quizplus · Accepted Answer

Under the periodic inventory method, purchases are recorded in the purchases account rather than directly in the inventory account. Therefore, a credit purchase would be recorded as a debit to the purchases account.

The Entry to Record a Credit Purchase When the Periodic