An account used in the periodic inventory system that is not used in the perpetual inventory system is:
A) Inventory
B) Sales
C) Sales Returns & Allowances
D) Purchases

Question

An account used in the periodic inventory system that is not used in the perpetual inventory system is: 
A) Inventory
B) Sales
C) Sales Returns & Allowances
D) Purchases

Quizplus · Accepted Answer

In the periodic inventory system, the Purchases account is used to record all purchases made during the accounting period, whereas in the perpetual inventory system, each purchase is recorded directly into the Inventory account. The Inventory, Sales, and Sales Returns & Allowances accounts are used in both inventory systems.

An Account Used in the Periodic Inventory System That Is