Question

When a periodic inventory system is​ used, ________. A. the process for closing the Income Summary account differs from the process used in the perpetual inventory system B. there is no need to take a physical count of inventory C. an adjusting entry is needed to record the ending Merchandise Inventory account balance D. beginning Merchandise​ Inventory, Purchases, and Freight In accounts are closed via the Income Summary Account

Answer 1

Answer:

C.

Explanation:

In a Under Periodic Inventory System, the inventory quantities are updated at the end of the period taking physical inventory count.

There is no track exactly how many items where sold.

It is not know how many items are left until the count closing inventory.

Ecuation:

Inventory at the begining of the period

+

Purchases

-

Cost of goods sold

=

Inventory at the end of the period (the ending inventory is determined by a physical count and subtracted/added from the cost of goods sold)