Hints $-$ Periodic systems: The only difference in recording and preparation of financial statement using Periodic System is on the

treatment of cost of sales and closing inventory $($please note all other items are recorded and treated same as is in the Perpetual

Inventory system$)$:

All purchases to be recorded using Purchase Account instead of inventory $\frac{a}{c},$ as follows:

Purchase ale

Accourts Paysable or Casil

All purchase return to be recorded as follows:

Closing inventory should be recorded in closing entries, as follows:

Closing inventory is then become an item in current asset.

Income statement $($Example$)-$ in a periodic system