Answered

Under a periodic inventory system, purchases are:

A. recorded in a separate temporary account which is closed at period end.
B. recorded in a separate temporary account which is not closed at period end.
C. recorded in a separate permanent account which is closed at period end.
D. recorded in a separate permanent account which is not closed at period end.



Answer :

GinnyAnswer

Final answer:

Purchases under a periodic inventory system are recorded in a separate temporary account that remains open until the period end.


Explanation:

Under a periodic inventory system, purchases are recorded in a separate temporary account which is not closed at period end. This temporary account is used to track the purchases until the end of the accounting period. Once the period ends, the balance in this account is transferred to the permanent inventory account.


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