Jaronski Company uses the periodic inventory system.At the end of the accounting period,journal entries are prepared to close out:

Question

Quizplus · Accepted Answer

The periodic inventory system tracks inventory purchases and sales throughout the accounting period, but the inventory balance is only determined at the end of the period. Therefore, journal entries are only needed to close out the beginning inventory balance and the purchases made during the period. The ending inventory balance is carried over to the next period and does not need to be closed out.

Jaronski Company Uses the Periodic Inventory System