A company using the periodic inventory system does not record the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

Question

Quizplus · Accepted Answer

In the periodic inventory system, the cost of goods sold and inventory adjustments are not recorded at the time of each sale. Instead, they are calculated periodically, typically at the end of each accounting period, through a physical inventory count and cost accounting.

A Company Using the Periodic Inventory System Does Not Record