Under a periodic inventory system, cost of goods sold is a residual amount and, for all practical purposes, cannot be verified independently from the inventory records.

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In periodic inventory system, cost of goods sold is calculated as a residual amount by subtracting ending inventory from the cost of goods available for sale. Since there is no continuous record keeping of inventory levels and transactions, it's difficult to verify the accuracy of cost of goods sold independently from the inventory records.

Under a Periodic Inventory System, Cost of Goods Sold Is