A company purchases \$3,000 worth of inventory on account. How should this transaction be recorded in a periodic inventory system?

• A. Debit Purchases \$3,000; Credit Accounts Payable \$3,000
• B. Debit Accounts Payable \$3,000; Credit Purchases \$3,000
• C. Debit Inventory \$3,000; Credit Accounts Payable \$3,000
• D. Debit Purchases \$3,000; Credit Cash \$3,000

Answer: (A)