Under the periodic inventory system,Cost of Goods Sold must be computed because it is not updated for sales and other transactions during the accounting period.

Question

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In the periodic inventory system, the Cost of Goods Sold account is not updated for each sale or transaction that affects inventory. Instead, a physical count of inventory is taken at the end of the accounting period, and the cost of goods sold is calculated based on the beginning inventory plus purchases made during the period, minus ending inventory. Therefore, Cost of Goods Sold must be computed at the end of the accounting period in order to accurately reflect the cost of goods sold during that period.

Under the Periodic Inventory System,Cost of Goods Sold Must Be