The key difference in the closing process under the periodic inventory system is how merchandise inventory is handled.

Question

Quizplus · Accepted Answer

Under the periodic inventory system, merchandise inventory is not constantly tracked, and the cost of goods sold is calculated at the end of the accounting period by taking the beginning inventory, adding purchases, and subtracting the ending inventory. This is different from the perpetual inventory system, where merchandise inventory is constantly updated and the cost of goods sold is calculated with each sale.

The Key Difference in the Closing Process Under the Periodic