Question

In a periodic inventory system, the cost of purchases is debited to: Inventory. Purchases. Cost of goods sold. Accounts payable.

Answer 1

Answer:

Inventory

Explanation:

A periodic inventory system is an efficient method to record the sale and purchase of inventory. It is a method which instantly using accounting software to record an entry. In the periodic inventory system, the cost of purchases is debited to an inventory account. The reason is that the purchase of goods increases the inventory, which is why the cost of purchases is debited to an inventory account.