Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 5 - Merchandising Operations and the Multiple-Step Income Statement - Self-Test Questions: 15

Answer

b

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.
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