(Appendices) PERIODICAND PERPETUAL INVENTORY SYSTEMS. A list of inventory-system characteristics is presented below. Match each characteristic with one of the following:

(A) periodic inventory systems, (B) perpetual inventory systems, or (C) both periodic and perpetual inventory systems.

1. Inventory purchases are recorded in a purchases account.

2. Inventory purchases are recorded in the inventory account.

3. Only revenue is recorded as sales are made during the period; the cost of sales is recorded at the end of the period.

- Both revenue and cost of sales are recorded during the period as sales are made.

. The inventory is verified by a physical count.

Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale.

7. Cost of goods sold, as reported on the income statement, is the total cost of goods removed from the inventory and sold during the period. LO5