Question why is a physical inventory needed under a periodic inventorysystem
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 6DQ: Why is it necessary to adjust the Merchandise Inventory account under a periodic inventory system?
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why is a physical inventory needed under a periodic inventorysystem
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Periodic inventory system: This is a system of accounting for inventory, where the quantity of inventory is recorded on a periodic basis. The up-to-date records are not maintained either for inventory or for cost of goods sold. The figure for inventory is determined only at the end of financial year or the balance sheet date. This physical count is the amount that appears in the records. This physical count is called physical inventory.
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