Under the Periodic Inventory System,which of the Following Statements Is

Multiple Choice

Under the periodic inventory system,which of the following statements is correct?

A) During the period, the business records the cost of all inventory bought in the Merchandise Inventory account.
B) Purchase Returns and Allowances and Purchase Discounts are contra expense accounts.
C) Freight in is debited to the Purchases account.
D) Purchase discounts are recorded as credits to the Purchases account.