The periodic inventory system updates the record of goods on hand

Question

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The periodic inventory system updates the record of goods on hand only at the end of the accounting period, which could be monthly, quarterly, or annually. This method requires a physical count of inventory to determine the quantity of goods on hand, which is then used to update the inventory records. Transactions are not recorded in real-time, which can make it difficult to determine the exact cost of goods sold and the value of ending inventory.

The Periodic Inventory System Updates the Record of Goods on Hand