Under the periodic inventory system,the journal entry to record the cost of ending inventory determined by a physical count is:

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Under the periodic inventory system, the cost of ending inventory determined by a physical count is recorded by debiting Inventory and crediting Cost of Goods Sold. This adjusts the Inventory account to its actual ending balance and decreases the Cost of Goods Sold for the goods that are still on hand at the end of the period.

Under the Periodic Inventory System,the Journal Entry to Record the Cost