Best Hardware uses a periodic inventory system. Its inventory was $38,000 at the beginning of the year, and $40,000 at the end. During the year, Best made purchases of merchandise totaling $107,000. Identify all of the correct answers:
A) To use this system, Best must take a complete physical inventory twice each year.
B) Prior to making adjusting and closing entries at year-end, the balance in Best's Inventory account is $38,000.
C) The cost of goods sold for the year is $109,000.
D) As sales transactions occur, Best makes no entries to update its inventory records or record the cost of goods sold.

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The Answer of Best Hardware uses a periodic inventory system. Its inventory was $38,000 at the beginning of the year, and $40,000 at the end. During the year, Best made purchases of merchandise totaling $107,000. Identify all of the correct answers:
A) To use this system, Best must take a complete physical inventory twice each year.
B) Prior to making adjusting and closing entries at year-end, the balance in Best's Inventory account is $38,000.
C) The cost of goods sold for the year is $109,000.
D) As sales transactions occur, Best makes no entries to update its inventory records or record the cost of goods sold.

Best Hardware Uses a Periodic Inventory System