Periodic Inventory System Assignment

A merchandiser purchased inventory on account for $17.000. In a periodic inventory system, the journal entry to record the purchase would include

O A. a debit to Accounts Payable for $17,000 and a credit to Merchandise Inventory for $17.000

OB. a debit to Purchases for $17,000 and a credit to Accounts Payable for $17,000

OC, a debit to Accounts Payable for $17,000 and a credit to Purchases for $17,000

O D. a debit to Merchandise Inventory for $17.000 and a credit to Accounts Payable for $17.000

Inventory turnover is computed by dividing average merchandise inventory by cost of goods sold.

O True

O False

The post-closing trial balance shows the net income for the period just ended.

O True

O False

In a periodic inventory system, the “cash register at the store is a computer terminal that records sales and updates inventory records.

O True

O False. Get Finance homework help today