contestada

At year-end, a department store shows a balance in the merchandise inventory account of $2 million and a physical inventory shows there is less than $2 million in merchandise on hand. What kind of inventory system does the department store use

Respuesta :

jepessoa

Answer:

perpetual inventory system

Explanation:

A periodic inventory system requires a physical count to determine ending inventory and cost of goods sold. When a company uses a periodic inventory system, they do not keep updated records of merchandise inventory account.

On the other hand, a perpetual inventory account keeps updated and current real time transactions. It generally is more efficient than the periodic system and allows you to calculate cost of goods sold immediately.

Otras preguntas