Under a periodic inventory system, transactions for purchases, purchase returns and allowances, purchase discounts, and transportation-in transactions are recorded in the Merchandise Inventory account.

Question

Quizplus · Accepted Answer

In a periodic inventory system, these transactions are recorded in separate accounts such as Purchases, Purchase Returns and Allowances, Purchase Discounts, and Freight-In, not directly in the Merchandise Inventory account.

Under a Periodic Inventory System, Transactions for Purchases, Purchase Returns