Under a periodic inventory system, to remove the beginning inventory from the books, the Income Summary account is credited for the amount of the beginning inventory.

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Under a periodic inventory system, the beginning inventory is not recorded in the books as a separate account. Instead, the cost of goods sold is calculated by subtracting the ending inventory from the sum of purchases and freight-in. Therefore, the Income Summary account is not credited for the amount of beginning inventory.

Under a Periodic Inventory System, to Remove the Beginning Inventory