Using a periodic inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a

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BlackTom AI · Accepted Answer

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; the inventory account is typically updated only at the end of the period. A credit to Inventory would imply a decrease in Inventory, which does not reflect the standard entry for a purchase on account.
Option B: debit to Merchandise Inventory. This choice is also incorrect for a periodic system. In a periodic setup, purchases are recorded in the Purchases account, not directly in Merchandise Inventory. The Inventory account is adjusted later, when determining cost of goods sold, through a ending/beginning inventory reconciliation.
Option C: debit to Accounts Payable. This option would reflect an increase in the liability side without recognizing the purchase in the appropriate purchase account. The standard entry for a purchase on account is to debit Purchases and credit Accounts Payable, so debiting Accounts Payable alone would misstate both assets and liabilities at the time of purchase.
Option D: debit to Purchases. This is the correct portrayal for a periodic system: the company records the amount of the purchase in the Purchases (expense/temporary) account and credits Accounts Payable to reflect the obligation to pay the supplier. This aligns with how periodic systems accumulate cost of goods sold and purchases separately until the physical inventory is adjusted at period end.

ACCT2200W04 Final- Requires Respondus LockDown Browser

Using a periodic inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a

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Which account CANNOT be linked to an inventory item?

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ACCT*2200*W04 Final- Requires Respondus LockDown Browser

Using a periodic inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a

查看解析

登录即可查看完整答案

类似问题

Which account CANNOT be linked to an inventory item?

When entering historical information for inventory items, which data can be entered as opening balances? Choose one of the options listed below.

In a perpetual inventory system, which of the following is recorded at the time of the sale?

Cost of Goods Sold is calculated by ______________ and then subtracting the ending inventory.

更多留学生实用工具

希望你的学习变得更简单

ACCT2200W04 Final- Requires Respondus LockDown Browser