Question

Under the periodic inventory system, the merchandise inventory account balance is the __________. a.) most recent inventory purchase

Answer 1

Under the periodic inventory system, the merchandise inventory account balance is the "ending inventory."

What is periodic inventory?

The periodic inventory system is a technique of inventory valuation for accounting purposes that involves performing a physical count of the inventory at regular intervals.

Some key features regarding the periodic inventory are-

• This accounting method begins with inventory, brings additional inventory purchases even during period, and subtracts ending inventory to calculate cost of goods sold (COGS).
• A company's unit inventory levels and COGS will not be known there under periodic inventory system until the physical count is completed.
• This system may be adequate for a company with a tiny proportion of SKUs in a slow-moving market, for everyone else, the permanent inventory system is preferred for the following reasons:

1. The perpetual system maintains the inventory asset balances in a company's database on a continuous basis, providing management with an immediate view of inventory.
2. The perpetual system maintains updated COGS as inventory moves; a periodic system cannot provide precise COGS figures among counting periods.
3. The permanent system tracks personal inventory items so that, in the event of a defect, the source of the issue can be quickly identified.

To know more about the periodic inventory, here

brainly.com/question/25887081

#SPJ4