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Assume a company uses the periodic inventory system. Which of the following accounts would not be...

Assume a company uses the periodic inventory system. Which of the following accounts would not be used in a journal entry to record purchases and related transactions?

Select one:

a. Purchase Returns and Allowances

b. Purchase Discounts

c. Merchandise Inventory

d. Purchases

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Answer #1
Option C is the answer
Merchandise inventory account is not used when the company follows the periodic inventory system. All the purchase or returns are passed through purchases and purchase returns accounts
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