The journal entry to remove the beginning inventory under the periodic inventory system is:

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the beginning inventory is not tracked throughout the accounting period. Instead, it is only accounted for at the end of the period when the physical count of inventory is taken. To remove the beginning inventory from the accounting records, the cost of goods sold account is debited and the inventory account is credited. Therefore, the correct journal entry to remove beginning inventory would be to debit Cost of Goods Sold and credit Inventory.

The Journal Entry to Remove the Beginning Inventory Under the Periodic