Answer to Question #208169 in Economics for Beauty Magadlela

Question

What will the journal entry be if an entity buys inventory on credit when the periodic inventory system is in use (Ignore any VAT implications)?

•  A. Debit inventory account and credit bank account.
•  B. Debit purchases account and credit trade payables control account.
•  C. Debit inventory account and credit trade payables control account.
•  
•  D. Debit trade payables control account and credit purchases account.
•  E. Debit purchases account and credit bank account.

Answer 1

C. Debit inventory account and credit trade payables control account.