Iowa Cattle Company Uses a Periodic Inventory System

Multiple Choice

Iowa Cattle Company uses a periodic inventory system.Iowa purchased cattle from Big D Ranch at a cost of $27,000 on credit.The entry to record the receipt of the cattle would be

A) Purchases ...........................27,000
Accounts Payable ..................27,000
B) Inventory ...........................27,000
Accounts Payable ..................27,000
C) Purchases ...........................27,000
Cash ..............................27,000
D) Inventory ...........................27,000
Cash ..............................27,000