A Company Uses the Periodic Inventory Method

question 92

Multiple Choice

A company uses the periodic inventory method.Which of the following entries would be made to record a purchase of inventory on account?

• A) The accounting entry would be a debit to Purchases and a credit to Accounts payable.
• B) The accounting entry would be a debit to Accounts payable and a credit to Purchases.
• C) The accounting entry would be a debit to Inventory and a credit to Accounts payable.
• D) The accounting entry would be a debit to Accounts payable and a credit to Inventory.