Contrasting periodic and
Identify whether each description best applies to a periodic or a
perpetual inventory system.
Provides more timely information to managers.
Requires an adjusting entry to record inventory shrinkage.
Markedly increased in frequency and popularity in business within the
Records cost of goods sold each time a sales transaction occurs.
Calculating revenues, expenses,
Fill in the blanks in the following separate income statements
. Identify any negative amount by putting it in parentheses.
Sales . . . . . . . . . . . . . . . . $60,000
Cost of goods sold
Merchandise inventory (beginning) . . . 6,000
Total cost of merchandise purchases .
Merchandise inventory (ending) . . .
Cost of goods sold . . . . . . . . . . 34,050