Periodic Inventory System Quiz

When merchandise is purchased on account, the journal entry under the periodic inventory method includes a debit to:

• Inventory

• Purchases

• Accounts Receivable

• Accounts Payable

Under the periodic inventory method, which account is used to record purchase discounts?

• Purchases Discount

• Purchase Returns and Allowances

• Sales Revenue

• Inventory

What account is credited when merchandise is purchased on credit?

• Accounts Payable

• Cash

• Inventory

• Purchases

When merchandise is returned to a supplier, the journal entry under the periodic method includes a debit to:

• Purchases

• Accounts Payable

• Purchase Returns and Allowances

• Inventory

Under the periodic inventory system, the inventory balance is updated:

• After each sale

• At the end of the accounting period

• After every purchase

• After receiving cash

When a sale of merchandise is made on account under the periodic inventory system, the journal entry includes a credit to:

• Sales Revenue

• Accounts Payable

• Inventory

• Accounts Receivable

Under the periodic inventory method, when the cost of goods sold is calculated, which of the following is subtracted from the goods available for sale?

• Beginning Inventory

• Purchases

• Ending Inventory

• Sales Revenue

What account is debited when a purchase is made under the periodic inventory method?

• Purchases

• Accounts Receivable

• Inventory

• Sales Revenue

If a company pays for merchandise purchased on account under the periodic system, the journal entry will include a debit to:

• Accounts Payable

• Cash

• Purchases

• Inventory

When merchandise is sold under the periodic inventory system, the cost of goods sold is not recorded at the time of sale. Which of the following accounts is affected only at the end of the period?

• Accounts Receivable

• Cost of Goods Sold

• Purchases

• Accounts Payable