Under the periodic inventory system,the Purchases account is used to accumulate all purchases of merchandise for resale.

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Under the periodic inventory system, the Purchases account is used to record all purchases of merchandise for resale. This account is debited when merchandise is purchased and credited when merchandise is returned to the supplier. The balance in the Purchases account is transferred to the Cost of Goods Sold account at the end of the accounting period to determine the cost of goods sold during that period.

Under the Periodic Inventory System,the Purchases Account Is Used to Accumulate