mes) Simtech, Inc. started business on January 1, 2020. During the year, they purchased $180,000 ofinventory on account. If the company uses a periodic inventory system, which of the following would beincluded in the entry to record the purchase of inventory? (AC 13)AO Credit to cashO Debit to PurchasesO Debit to Accounts PayableO Debit to inventory

Name: mes) Simtech, Inc. started business on January 1, 2020. During the ye
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Description: mes) Simtech, Inc. started business on January 1, 2020. During the year, they purchased $180,000 ofinventory on account. If the company uses a periodic inventory system, which of the following would beincluded in the entry to record the purchase of

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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mes) Simtech, Inc. started business on January 1, 2020. During the year, they purchased $180,000 of
inventory on account. If the company uses a periodic inventory system, which of the following would be
included in the entry to record the purchase of inventory? (AC 13)
A
O Credit to cash
O Debit to Purchases
O Debit to Accounts Payable
O Debit to inventory

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Step 1

The valuation of inventory is the one of the most important part of the cost accounting. There are various valuation techniques or inventory system for accounting the figures of inventory and inventory flow. The two major techniques for valuing the inventory are : Perpetual inventory system and Periodic inventory system.

In each inventory system, there are different process for accounting the inventory of the business. The periodic inventory system includes the physical count to ascertain the cost of goods sold and physical inventory in the business.

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