Best Hardware uses a periodic inventory system. Its inventory was \($38,000\) at the beginning of the year and \($40,000\) at the end. During the year, Best made purchases of mer- chandise totaling \($107,000\). Identify all of the correct answers:

a. To use this system, Best must take a complete physical inventory twice each year. C. Prior to making adjusting and closing entries at year-end, the balance in Best's Inventory account is \($38,000\). The cost of goods sold for the year is $109,000.

d. As sales transactions occur, Best makes no entries to update its inventory records or to record the cost of goods sold.