In a periodic inventory system,cost of goods sold is the account credited when there is unrealised profit in closing inventories from a previous year.

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In a periodic inventory system, cost of goods sold is calculated as the beginning inventory plus purchases minus ending inventory. The account credited when there is unrealized profit in closing inventories from a previous year would be a capital or equity account, not cost of goods sold.

In a Periodic Inventory System,cost of Goods Sold Is the Account