Identify whether each description best applies to a periodic or a perpetual inventory system. Inventory system Description a. The merchandise inventory account balance remains unchanged during the period. b. Does not require the use of a "purchases" account. c. Records cost of goods sold each time a sales transaction occurs. d. Purchases, purchases discounts, and purchases returns and allowances are recorded in separate temporary accounts. e. Does not require an adjusting entry to record inventory shrinkage. Periodic inventory system Perpetual inventory system