Which of the following accounts is used in the periodic inventory system but not used in the perpetual inventory system?
A) Sales
B) Merchandise Inventory
C) Purchases
D) Accounts Payable
E) Sales Returns and Allowances

Question

Quizplus · Accepted Answer

Purchases account is used to record the cost of inventory purchased during the accounting period in the periodic inventory system. However, in the perpetual inventory system, the cost of inventory purchased is recorded directly into the Merchandise Inventory account, making the Purchases account unnecessary.

Which of the Following Accounts Is Used in the Periodic