When Recording in a Purchases Journal with a Periodic Inventory

question 28

True/False

When recording in a purchases journal with a periodic inventory system, the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR.

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Definitions:

Salaries Expense

The cost incurred by a company to pay for employee services performed during a period.

Time Card

A record of the amount of an employee's time spent on different jobs, typically used for payroll purposes.

Internal Control

A system implemented by a company to ensure the integrity of financial and accounting information, promote accountability and prevent fraud.

Payrolls

The total amount of money a company pays to its employees for a set period of time, including wages, salaries, bonuses, and deductions.