In a periodic inventory system, the cost of inventories sold is:
A)Debited to accounts receivable.
B)Credited to cost of goods sold.
C)Debited to cost of goods sold.
D)Not recorded at the time of sale.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the cost of goods sold is not recorded at the time of sale. Instead, it is calculated at the end of the accounting period by taking the beginning inventory, adding purchases, and subtracting the ending inventory.

In a Periodic Inventory System, the Cost of Inventories Sold