In a periodic inventory system, the cost of purchases is debited to:
A) Purchases.
B) Cost of goods sold.
C) Inventory.
D) Accounts payable.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the cost of purchases is debited to the Purchases account, which is used to accumulate the cost of inventory bought during the period. At the end of the accounting period, the balance in the Purchases account is used to calculate the cost of goods sold.

In a Periodic Inventory System, the Cost of Purchases Is