The Following T-Accounts Are from the Ledger of Hill Company

question 116

Multiple Choice

The following T-accounts are from the ledger of Hill Company.Hill uses the periodic inventory system.
Which of the following is true about Hill Company?

• A)When merchandise is sold,the Purchases account will be credited for cost of goods sold.
• B)The accounts indicate that Hill returned $6,000 of merchandise to a supplier.
• C)The balance in the purchases account will appear on the balance sheet at year end.
• D)The T-accounts indicate that Hill purchased inventory on account.