Under a periodic inventory system a. a separate account for each type of merchandise is maintained in a subsidiary ledger b. inventory is debited when goods are returned to vendors c. a physical inventory is taken at the end of the period d. accounting records continuously disclose the amount of inventory

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Jordyn Cortez

Business

9 August, 14:45

Under a periodic inventory system a. a separate account for each type of merchandise is maintained in a subsidiary ledger b. inventory is debited when goods are returned to vendors c. a physical inventory is taken at the end of the period d. accounting records continuously disclose the amount of inventory

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Morse · Answer 1

C) a physical inventory is taken at the end of the period

Explanation:

Under the periodic inventory system, the cost of goods sold is determine at the end of the accounting only after a physical count of the inventory has been made. It requires to physically count the units held in inventory to determine how many were actually sold.

On the other hand, a perpetual inventory system continuously discloses the amount of inventory.