Under the periodic inventory system, what is the correct entry to record the cost of the sale of a dining suite sold to a customer for $1650 including 10% GST? (The dining suite was originally purchased on credit for $990 including GST of $90).

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the cost of goods sold is not recorded at the time of each sale. Instead, it is determined at the end of the accounting period through a physical inventory count.

Under the Periodic Inventory System, What Is the Correct Entry