Chapter 6 2 marks

Del Sol Company, which uses the periodic inventory system, purchased merchandise on credit for $5,000. The entry to record this transaction is

1. Debit Purchases, $5,000, and credit Accounts Payable, $5,000

2. Debit Purchases, $5,000, and credit Cost of Goods Sold, $5,000

3. Debit Merchandise Inventory, $5,000, and credit Accounts Payable, $5,000

4. Debit Merchandise Inventory, $5,000, and credit Cost of Goods Sold, $5,000

Show your work in T-accounts;

Support your answer with theoretical explanations;