Ask Question
1 January, 11:54

At year-end, a department store shows a balance in the merchandise inventory account of $2 million and a physical inventory shows there is less than $2 million in merchandise on hand. What kind of inventory system does the department store use

+5
Answers (1)
  1. 1 January, 12:55
    0
    perpetual inventory system

    Explanation:

    A periodic inventory system requires a physical count to determine ending inventory and cost of goods sold. When a company uses a periodic inventory system, they do not keep updated records of merchandise inventory account.

    On the other hand, a perpetual inventory account keeps updated and current real time transactions. It generally is more efficient than the periodic system and allows you to calculate cost of goods sold immediately.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “At year-end, a department store shows a balance in the merchandise inventory account of $2 million and a physical inventory shows there is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers