A perpetual inventory system is implemented at TRADERS (Pty) Ltd. The balance carried forward for the financial period amounted...

 

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A perpetual inventory system is implemented at TRADERS (Pty) Ltd. The balance carried forward for the financial period amounted to R13 000. The total purchases amounted to R20 000 with sales of R18 500. Management considers changing to a periodic inventory system and requested an explanation from you on how the transaction recording would be affected.

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In a perpetual inventory system inventory levels are continuously updated in real time with each purchase and sale providing a current and accurate vi View the full answer