Easy Software uses a periodic inventory system. Its inventory was $36,000 at the beginning of the year and $48,000 at the end. During the year, Easy Software made purchases of merchandise totaling $99,000. (Identify the two correct answers).

aTo use this system, Easy must take a complete physical inventory count twice each year.

bPrior to making adjusting and closing entries at year-end, the balance in EasysInventory account is $48,000.

cThe cost of goods sold for the year is $87,000.

dAs sales transactions occur during the year, Best makes no entries to update its inventory records or to record the cost of goods sold.