The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be Jan. 1Purchases1,600 Accounts Receivable1,600 Jan. 1Inventory1,600 Accounts Payable1,600 Jan. 1Purchases1,600 Accounts Payable1,600 Jan. 1Office Supplies1,600 Accounts Payable1,600

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Business

Milagros Nichols

14 March, 00:29

The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be Jan. 1Purchases1,600 Accounts Receivable1,600 Jan. 1Inventory1,600 Accounts Payable1,600 Jan. 1Purchases1,600 Accounts Payable1,600 Jan. 1Office Supplies1,600 Accounts Payable1,600

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Greta Nelson · Answer 1

The journal entry is as follows:

On January 1,

Purchases A/c Dr. $1,600

To Accounts Payable A/c $1,600

In periodic accounting the merchandise inventor is not debited since merchandise is updated at the year end only.

Purchases account is used instead of inventory account in periodic system.