Question

On december 1, marsh, inc. sold inventory for $5,500 on account with terms 2/10 n/30. the customer pays nine days later. marsh uses a periodic inventory system. what amount will marsh record in its inventory account on december 1?

Answer 1

There is no entry to be made under the inventory or purchases account. Under the periodic inventory system, all entries that will be made to the inventory or purchases account will be held at the end of the reporting or fiscal period.

And on the December 1 journal entry only consists of
Debit to Accounts Receivable 5500
Credit to Sales 5500