ACC 205 WEEK 3 DISCUSSION 1.docx - WEEK 3 DISCUSSION 1 How...

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WEEK 3 DISCUSSION 1 How are periodic and perpetual inventory systems different? Periodic inventory systems are the physical count of a business inventory to resolve the number of products on hand, and the perpetual inventory system is a computerized model of the total amount of merchandise of the inventory. Every single company needs to have different ways to resolve the value of the merchandise inventory on hand along with the items that has been sold. The perpetual inventory system is what is used to track the quantity of the goods on hands, this requires a company to have a good count of the inventory. Why does a merchandising company prepare a cost of goods section for the income statement? The cost of goods sold the cost of merchandise inventory that the business has sold to clients. The cost of goods minus the sales revenue determine the gross profit for the company ending period. The merchandise company prepare a cost of goods for the income statement in order to

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