(Appendix 6A) Which of the following statements is true for a company that uses a periodic inventory system?

a. The purchase of inventory requires a debit to Merchandise Inventory.

b. The payment of a purchase within the discount period requires a credit to Purchase Discount.

c. The return of defective inventory requires a debit to Purchase Returns and Allowances.

d. Any amounts paid for freight are debited to Merchandise Inventory.

The following information is used for Multiple-Choice Exercises