The main difference in the sales journal under the perpetual and periodic inventory system is:
A) The sales tax payable column is used under the perpetual system but not the periodic.
B) The column for recording cash is used under the perpetual system but not the periodic.
C) The sales tax receivable column is used under the perpetual system but not the periodic.
D) The perpetual system has a column to record cost of goods sold but the periodic system does not.
E) The accounts receivable column is used under the perpetual system but not the periodic.

Question

Quizplus · Accepted Answer

The main difference in the sales journal under the perpetual and periodic inventory system is that the perpetual system has a column to record the cost of goods sold, which is updated in real-time as inventory is sold, while the periodic system does not have this column and only calculates the cost of goods sold at the end of the accounting period. None of the other options mentioned are specific differences between the two systems.

The Main Difference in the Sales Journal Under the Perpetual