Chapter 5, Problem 20Q

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

To Indicate: Whether the below mentioned accounts are added or deducted from purchases to determine the cost of goods purchased under a periodic inventory system.