Questions
ACCT*2200*W04 Final- Requires Respondus LockDown Browser
Single choice
Using a periodic inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a
Options
A.credit to Merchandise Inventory
B.debit to Merchandise Inventory
C.debit to Accounts Payable
D.debit to Purchases
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Step-by-Step Analysis
When recording purchases under a periodic inventory system, the accounting treatment focuses on the Purchases account rather than directly adjusting Inventory at the time of purchase.
Option A: credit to Merchandise Inventory. This is incorrect because, in a periodic system, Merchandise Inventory is not reduced on purchase; ......Login to view full explanationLog in for full answers
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