When Using the Periodic Inventory System, Which of the Following

question 96

Multiple Choice

When using the periodic inventory system, which of the following generally would not be separately accounted for in the computation of cost of goods sold?

• A) Trade discounts applicable to purchases during the period
• B) Cash (purchase) discounts taken during the period
• C) Purchase returns and allowances of merchandise during the period
• D) Cost of freight-in for merchandise purchased during the period

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.