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.