Using the Periodic Inventory System,state Which Accounts Are Used and Whether

question 94

Essay

Using the periodic inventory system,state which accounts are used and whether the account is debited or credited.All transactions involve the purchase of inventory.

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Definitions:

Journal Entry

A recording in the accounting ledger that notes all the financial transactions of a business.

Prepaid Insurance

An asset account that reflects the amount paid for insurance policies in advance, before the coverage period begins.

Accounts Receivable

Financial obligations customers have to a business for received services or goods that have not been paid for.

Miscellaneous Expense

Expenses that do not fit into any specific category of the business's financial statements, often small or infrequent costs.