When a periodic inventory system is in use,the Inventory account is updated only at the end of the period.

Question

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Unlike a perpetual inventory system,a periodic system does not track the cost of goods sold during the accounting period.Purchases of inventory are recorded in the Purchases account.Then,an entry is made at year-end to adjust the Inventory account to reflect the quantity and cost of the inventory that is on hand.

When a Periodic Inventory System Is in Use,the Inventory Account