Still merchandisingPeriodic inventory systems require more bookkeeping entries on the inventory side, since there are more expense and contra-expense accounts to track, but less bookkeeping on the sales side, since you aren’t concerned with the inventory.
Calculation of Cost of Goods Sold:
- Beginning Inventory + Net Purchases + Freight In = Cost of Goods Available For Sale
- Cost of Goods Available For Sale – Merchandise Inventory at End of Period = Cost of Goods Sold
Excercises E8 & E9 on page 245, make up two multiple choice questions on chapter contents.