Respuesta :
A periodic inventory system is an inventory system that continually updates accounting records for merchandise transactions.
What is a Periodic Inventory System?
- When a physical inventory count is done, a periodic inventory system just updates the ending inventory balance in the general ledger.
- Few businesses perform physical inventory counts more frequently than once every quarter or year because they are time-consuming.
- The cost of the inventory as of the most recent physical inventory count is still reflected in the accounting system's inventory account in the interim.
All purchases made between physical inventory counts are tracked in a purchasing account under the periodic inventory system. The balance in the purchasing account is transferred into the inventory account when a physical inventory count is completed, and the inventory account is then changed to reflect the cost of the ending inventory.
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