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D. Purchases. The account purchases is debited if a company using the periodic inventory system purchased goods on credit, with a corresponding credit to the accounts payable for such creditor. On the other hand, the inventory account is being used instead of purchases if the company is following the perpetual inventory system.
Correct Answer is D) Purchases will be debited & Creditors for goods will be credited if a business purchases goods on credit.
Under periodic inventory system, it is usually debited to the Purchases account. Answer is D
Purchases will be debit and creditor will be credit, answer is (D)
