In a periodic inventory system,which of the following accounts may be closed by debiting Cost of Goods Sold?
A)Sales,Inventory (beginning),and Gross Profit.
B)Inventory (beginning)and Purchases.
C)Purchases and Inventory (ending).
D)Sales,Inventory (beginning),and Cost of Goods Available for Sale.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the Cost of Goods Sold (COGS) is calculated at the end of the accounting period by adding purchases to the beginning inventory and then subtracting the ending inventory. Therefore, the accounts that may be closed by debiting COGS are the beginning inventory and purchases, as these are the accounts that directly contribute to the cost of goods that were available for sale during the period.

In a Periodic Inventory System,which of the Following Accounts May