Asked by justin motley on Jun 29, 2024
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A merchandising company using a perpetual inventory system will usually need to make an adjusting entry to ensure that the recorded inventory agrees with physical inventory count.
Perpetual Inventory System
An inventory accounting technique that instantly logs the sale or acquisition of inventory using computerized point-of-sale systems and enterprise asset management software.
Adjusting Entry
A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate periods.
Physical Inventory Count
A process of counting actual inventory to verify the quantity on hand, usually performed at the end of an accounting period.
- Recognize how different transactions are recorded in a perpetual inventory system.
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Learning Objectives
- Recognize how different transactions are recorded in a perpetual inventory system.
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