Which of the following statements is correct concerning the operations of a merchandiser who chooses to use a periodic inventory system? Merchandise inventory is always up to date. The merchandiser is not concerned about inventory shrinkage. Cost of goods sold is recorded when a sale is made. The merchandiser is only allowed to use FIFO to calculate its ending inventory cost. 3 Inventory reported on the balance sheet is adjusted based on a physical inventory count.

Which of the following statements is correct concerning the operations of a merchandiser who chooses to use a periodic inventory system? Merchandise inventory is always up to date. The merchandiser is not concerned about inventory shrinkage. Cost of goods sold is recorded when a sale is made. The merchandiser is only allowed to use FIFO to calculate its ending inventory cost. Inventory reported on the balance sheet is adjusted based on a physical inventory count