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Identify whether each description best applies to a periodic or a perpetual inventory system. Inventory system Description a. Requires the use of a purchases account
Identify whether each description best applies to a periodic or a perpetual inventory system. Inventory system Description a. Requires the use of a "purchases" account as goods are purchased during the period. b. Updates the inventory account only at period-end. c. Updates the inventory account continually. d. Returns immediately affect the account balance of merchandise inventory. e. Revenue is recorded when merchandise is sold but not cost of goods sold. Periodic inventory system Perpetual inventory system
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