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.
Accounting: Tools for Business Decision Making, 5th Edition
by Kimmel, Paul D.; Weygandt, Jerry J.; Kieso, Donald E.
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 - Page 259: 15
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