The periodic inventory system requires updating the inventory account at the end of the period to reflect the quantity and cost of goods available for sale and the cost of goods sold.

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In a periodic inventory system, the inventory account is updated only at the end of the period to reflect the quantity and cost of goods available for sale and the cost of goods sold, unlike the perpetual inventory system where the inventory account is updated continuously.

The Periodic Inventory System Requires Updating the Inventory Account at the End