Asked Jan 16, 2020

The Esquire Company employs a periodic inventory system. Indicate the effect (increase or decrease) of the following items on cost of goods sold: 1. Beginning inventory 2. Purchases 3. Ending inventory 4. Purchase returns 5. Freight-in


Expert Answer

Step 1

Periodic Inventory System: Under this system, the balance of the merchandise inventory is not adjusted when the purchases and sales takes place, rather it is adjusted at the end of a particular period on a periodic basis.

Step 2

Indicate the effect of increase or decrease of...

Accounting homework question answer, step 2, image 1

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