Work Step by Step
In a periodic inventory system, the inventory account is not updated until the end of the period. A purchases account is used to temporarily book new inventory. Thus, purchases on account are debited to Purchases.
You can help us out by revising, improving and updating this answer.Update this answer
After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.