How do you record purchases in periodic inventory?

How do you record purchases in periodic inventory?

Record the purchase of inventory in a journal entry by debiting the purchase account and crediting accounts payable. Record the purchase discount by debiting the accounts payable account and crediting the purchase discount account.

In what account are purchases recorded when the periodic inventory system is used?

In a periodic inventory system, purchases are recorded in the Purchases account.

What is merchandise inventory in periodic system?

A periodic inventory system only records updates to inventory and costs of sales at scheduled times throughout the year, not constantly. Merchandise Inventory and Cost of Goods Sold are updated at the end of a period. Cost of goods sold (COGS) includes all elements of cost related to the sale of merchandise.

Does a periodic inventory system use a purchases account?

In a periodic inventory system, no continuous record of changes is kept. The yearly inventory purchases are recorded in the purchases account, which is a ledger listing all inventory purchases and their costs.

What is a periodic inventory system quizlet?

The periodic system uses a temporary Purchases account that accumulates the cost of all purchase transactions during each period. Purchase discount. The periodic system uses a temporary Purchase Discounts account that accumulates discounts taken on purchase transaction during the period.

When using the periodic inventory system What is a physical inventory count used to determine?

When using the periodic system, the physical inventory count is used to determine c) both the cost of goods sold and the cost of ending inventory.