QS 4-21A (Algo) Contrasting periodic and perpetual systems LO P5 Identify whether each description best applies to a periodic or a perpetual inventory system Description a. Provides more timely information to managers. b. The merchandise inventory account balance remains unchanged during the period, c. Does not require the use of a "purchases" account d. Records cost of goods sold each time a sales transaction occurs. e. Purchases, purchases discounts, and purchases returns and allowances are recorded in separate temporary accounts. Inventory system Perpetual inventory system Periodic inventory system Perpetual inventory system