When Interim Accounting Reports Are Prepared on a Worksheet and the Periodic

Multiple Choice

When interim accounting reports are prepared on a worksheet and the periodic method of accounting for inventory is used, closing inventory is:

A) not recorded.
B) recorded in the income statement debit column as a deduction from cost of sales and in the balance sheet debit column as a current asset.
C) recorded in the income statement credit column as a deduction from cost of sales and in the balance sheet debit column as a current asset.
D) is recorded as a debit to the inventory asset account and as CR to the gross profit account.