Under the periodic inventory system, the cost of goods sold is recorded when sales are made.

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the cost of goods sold is calculated at the end of an accounting period (usually monthly or annually) by subtracting the ending inventory from the sum of the beginning inventory and the purchases made during the period. Therefore, the cost of goods sold is not recorded at the time of the sale, but rather calculated after the accounting period has ended.

Under the Periodic Inventory System, the Cost of Goods Sold