A merchandising company using a perpetual inventory system will usually need to make an adjusting entry to ensure that the recorded inventory agrees with physical inventory count.

Question

Quizplus · Accepted Answer

A perpetual inventory system is designed to track inventory levels in real time through the use of electronic point-of-sale systems and barcode scanners. However, even with this system in place, discrepancies between actual physical inventory counts and recorded inventory levels may occur due to theft, loss, or other reasons. Therefore, the company may need to make an adjusting entry to ensure that the recorded inventory matches the physical inventory count.

A Merchandising Company Using a Perpetual Inventory System Will Usually