ection 3-INVENTORY RECORDKEEPING USING THE PERIODIC METHOD l companies are on a calendar year unless otherwise stated. Under the periodic method, the year-end adjusting entry for inventory affects: a. only the income statement. b. only the balance sheet. c. both the income statement and the balance sheet. d. none of the above. Which account balance is missing in this computation of cost of goods sold? Beginning Inventory Purchases Goods Available for Sale Cost of Goods Sold Xx,XXX a. b. c. d. Purchase Returns and Allowances Freight Ending Inventory Sales Returns and Allowances