Asked by Marie Paulicia G. Christoph on May 09, 2024
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Under the periodic inventory system, the cost of merchandise sold is equal to the beginning merchandise inventory plus the cost of merchandise purchased plus the ending merchandise inventory.
Merchandise Inventory
refers to the goods available for sale to customers in the retail and wholesale industries.
Periodic Inventory System
An accounting method where inventory values and cost of goods sold are determined at the end of an accounting period.
Cost of Merchandise Sold
The total expense incurred by a business to sell goods over a period, including the cost of acquiring or manufacturing those goods.
- Acquire knowledge about the eternal and occasional inventory systems and their effects on financial accounting.
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Learning Objectives
- Acquire knowledge about the eternal and occasional inventory systems and their effects on financial accounting.
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