Question: What is the main distinction between perpetual and periodic inventory
What is the main distinction between perpetual and periodic inventory systems? Which type of system provides better internal control over inventory? Explain why.
Answer to relevant QuestionsWhy is a physical count of inventory necessary in a periodic inventory system? Why is it still necessary in a perpetual inventory system? In its annual report, American Eagle Outfitters states that its “e-commerce operation records revenue upon the estimated customer receipt date of the merchandise.” Is this FOB shipping point or FOB destination? If ...If net sales are $ 300,000, cost of goods available for sale is $ 280,000, and gross profit percentage is 35%, what is the amount of ending inventory? Using the information in M6-8, prepare the journal entries needed at the time of sale and collection, assuming the company uses a perpetual inventory system. Info M6-8 Merchandise costing $ 2,000 is sold for $ 3,000 on terms ...Using the information in E6-16, prepare journal entries to record the transactions, assuming Bear’s Retail Store uses a perpetual inventory system. Info E6-16 Nov. 20 Sold two items of merchandise to Cheryl Jahn, who paid ...
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