The Following T-Accounts Are from the Ledger of Hill Company

Multiple Choice

The following T-accounts are from the ledger of Hill Company.Hill uses the periodic inventory system.


Which of the following is true about Hill Company?

A) When merchandise is sold,the Purchases account will be credited for cost of goods sold.
B) The accounts indicate that Hill returned $6,000 of merchandise to a supplier.
C) The balance in the purchases account will appear on the balance sheet at year end.
D) The T-accounts indicate that Hill purchased inventory on account.