Under the periodic method, the information on sales can be combined within any period because all purchases are assumed to occur before any sales transactions.

Question

Quizplus · Accepted Answer

In the periodic inventory system, inventory is counted and valued at the end of a period. All purchases made within the period are presumed to be sold before the end of the period. Therefore, the cost of goods sold is calculated using the total value of purchases made within the period, not just the specific items sold. This allows for combining of sales and purchase information within a period.

Under the Periodic Method, the Information on Sales Can Be