A Merchandiser Purchased Inventory on Account for $10,000

question 79

Multiple Choice

A merchandiser purchased inventory on account for $10,000. Under the periodic inventory system, the journal entry to record purchases would include:

• A)a debit to Purchases for $10,000 and a credit to Accounts Payable for $10,000.
• B)a debit to Accounts Payable for $10,000 and a credit to Purchases for $10,000.
• C)a debit to Merchandise Inventory for $10,000 and a credit to Accounts Payable for $10,000.
• D)a debit to Accounts Payable for $10,000 and a credit to Merchandise Inventory for $10,000.