Bramble Lane Outfitters Ltd. uses a PERIODIC system. On 3 April it buys 200 headlamps at $18 each on account, terms 2/10, n/30. Record the purchase.

Answer

Dr Purchases 3600; Cr Accounts Payable 3600

Accounts - Purchases - Inventory - Accounts Payable - Cost of Goods Sold - Cash Periodic collects the year’s buying in **Purchases** (debit) 3,600, a temporary account, with **Accounts Payable** (credit). The trap is **Inventory** — under periodic it is not touched until the count. Cost of Goods Sold is never debited during the year; it is computed at year end.

Hermanson Vol 1 ch 6 (the periodic system; cost of goods sold section); Dauderis & Annand §5.7 (concept map H7)