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What temporary accounts are used in the periodic inventory system?
In a periodic inventory system, the main temporary accounts used are Purchases, Purchase Returns and Allowances, and Purchase Discounts. At the end of the accounting period, these accounts are closed to calculate the cost of goods sold by adjusting the Inventory account based on a physical count. The difference between the beginning and ending inventory, along with the purchases, determines the cost of goods sold for the period.
What is the difference between periodic and perpitual inventory system?
Periodic Inventory System Inventory account and cost of goods sold are non-existent until the physical count at the end of the year. Purchases account is used to record purchases. Purchase Return account is used to record Purchases Returns account. Cost of goods sold or cost of sale is computed from the ending inventory figure For goods returned by customers there are no inventory entries. Perpetual Inventory System Account and the balance of costs of goods sold and inventory account exist all the time. No individual purchases account but the purchases are recorded in the Inventory Account. No individual Purchase Returns account but the purchases return are recorded in the Inventory Account. Record cost of goods sold/cost of sale - inventory is reduced when there is a sale. Returns from customers are recorded by reducing the cost of goods sold and adding back into inventory.
What is the difference between inventory control and inventory planning?
Their is no Difference
What is difference between fixed asset and inventory?
What is the difference between fixed asset and inventory
What is the difference between stock and inventory?
The difference between stock and inventory is that stock is what you have if you're selling items. Inventory includes what you have as your belongings.
What are the differences between hire purchase transaction and deferred payment?
give three similarities and three difference between hire purchases and deferred payment
What is the difference between a purchase on account and a sale on account?
Purchase on account means purchases from vendors on credit while sales on account means selling to customers on credit.
Explain inventory Management policies?
what is definition of inventory? what is the difference between inventory and asset?
What is the difference between periodic inventory and perpetual inventory?
Periodic inventory method calculate ending stock at the end of the accounting period, which could be Month to Date or Year to Date, while Perpetual inventory system calculates the ending stock on a continuous basis after each transaction (Purchase or Sell). Within Retail industry, periodic inventory method used for inventory valuation at the stores, whereas distributer like SuperValu (in US) follows perpetual inventory method to track inventory in their distribution centers. As a best practice, some of the retail companies are using perpetual accounting method to track inventory available in warehourses and distribution centers. In an idealistic world, perpetual inventory method can provide the true and real time inventory information, however due to complexities in consolidating all the purchases, sales, shrinkages and other market factors, it is advisable for retail companies to follow periodic accounting method to analyze and review the results before presenting the inventory valuation results to internal and external agencies like Shareholders, Income Tax Authorities, et el.
What is the difference between pricing inventory and valuation inventory?
in fact there is no diff.
What is the difference between periodic and perpetual inventory systems?
The primary difference between periodic and perpetual inventory systems lies in how inventory levels are tracked. In a periodic inventory system, updates to inventory balances are made at specific intervals, typically at the end of an accounting period, relying on physical counts. In contrast, a perpetual inventory system continuously updates inventory records in real-time with each purchase and sale transaction, providing a more accurate and up-to-date view of inventory levels at all times. This difference affects decision-making, financial reporting, and inventory management practices.
What is the difference between Days to sell inventory and Average age of inventory?
There is no different between the two measurement.
