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QS 5-16A Contrasting periodic and perpetual systems LO P5 Identify whether each description best applies to a periodic or a perpetual inventory system. Description Inventory system a. Cost of goods sold is recorded at the end of the period when an inventory count is performed b. Provides managers with information on inventory levels at the end of each period only. C. The merchandise inventory balance remains unchanged during the period. d. Revenue is recorded when merchandise is sold but not cost of goods sold. e. Records cost of goods sold each time a sales transaction occurs