Using a periodic inventory system, the buyer’s journal entry to record the payment for merchandise within...

Using a periodic inventory system, the buyer’s journal entry to record the payment for merchandise within the discount period includes a:

Select one:

A. Debit to Cost of Goods Sold

B. Credit to Purchase Discounts

C. Debit to Inventory

D. Credit to Accounts Payable

Expert Solution

Entry for payment within the discount period will be-

Accounts payable Debit

Cash/Bank Credit

Purchase discount Credit

Therefore correct answer is "B" that is "Credit to Purchase Discounts".

ekkarill92 answered 2 years ago

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