Double-entry for owner's drawings of goods

Steps:

• Recognize owner's personal use of goods as a drawing, reducing owner's equity.
• Debit the drawings account to record the increase in withdrawals.
• Credit the purchases account to reflect the reduction in goods available for sale.
• Ensure entries balance: drawings (asset/equity reduction) offsets purchases (expense adjustment).

Why B is correct:

• In periodic inventory systems, drawings of goods debit drawings (owner's withdrawal) and credit purchases (reduces cost of goods acquired, per basic bookkeeping principles).

Why the others are wrong:

• A: Credits inventory, which applies in perpetual systems but not when adjusting purchases directly.
• C: Ignores drawings entirely, failing to record owner's equity reduction.
• D: Reverses the logic, incorrectly increasing purchases while reducing drawings.

Final answer: B