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. Inventory system a. Description Provides more timely information to managers. b. Gives managers immediate access to detailed information on inventory. c. Records goods purchased during the period in a "purchases" account. d. Requires an adjusting entry to record inventory shrinkage. e. Records cost of goods sold each time a sales transaction occurs. Periodic inventory system Perpetual inventory system