Question

What is the major difference between a periodic and perpetual inventory system? Group of answer choices Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the accounting period. Under the periodic inventory system, no journal entry is recorded at the time of the sale of inventory for the cost of the inventory. All of the answers are correct. Under the periodic inventory system, the purchase of inventory will be debited to the Purchases account.

Answer 1

Answer:

Answer is Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the accounting period.

Refer below.

Explanation:

The major difference between a periodic and perpetual inventory system is:

Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the accounting period

Answer 2

Answer:

All the answers are correct

Explanation:

The periodic inventory system: This is an accounting system which uses an occasional physical count to measure the level of inventory and the cost of goods sold. This is usually used by small business owners.

Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the accounting period. No journal entry is recorded at the time of the sale of inventory for the cost of the inventory. The purchase of inventory will be debited to the Purchases account.

The perpetual system: This is an accounting system which keeps track of inventory balances continuously with updates made automatically whenever a product is received or sold. It is used by large stores and businesses.