The following characteristics are related to either periodic inventory or perpetual inventory systems.
a. A physical count of goods on hand at year end is required.
b. Inventory records are continuously updated.
c. Purchases of inventory are recorded in an asset account at the time of purchase.
d. Bar code scanners are often utilized when using this inventory system.
e. It is necessary to calculate the cost of goods sold at the end of the year with this inventory system.
Identify each characteristic as one of the following:
a. Periodic inventory
b. Perpetual inventory
c. Both periodic and perpetual inventory
d. Neither periodic nor perpetual inventory