Anthony Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.
Perpetual
Perpetual System is that system in which company continuously updates the value of inventory while in periodic system inventory valuation is done only for closing inventory when company done physical inventory calculation.
Periodic
periodic takes place on an irregular schedule where perpetual is a constant state of inventory
Anthony Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.
Perpetual
By taking a physical count. They will take their recorded amount and subtract the physical count to analyze inventory shrinkage.
Perpetual System is that system in which company continuously updates the value of inventory while in periodic system inventory valuation is done only for closing inventory when company done physical inventory calculation.
Periodic
Businesses that have and exchange a lot of inventory. Such as a retail store like WalMart.
periodic takes place on an irregular schedule where perpetual is a constant state of inventory
Perpetual system Perpetual system
perpetual
a thing that goes on and on
Perpetual: All inventory entries directly affect inventory Periodic: All inventory entries affect other accounts, which are then closed to inventory. Example: A company purchased $100 worth of inventory on account Perpetual: Inventory (Debit) 100 Accounts Payable (Credit) 100 Periodic Purchases (Debit) 100 Accounts Payable (Credit) 100 Later with Periodic (usually at the end of the reporting period) Inventory (Debit) 100 Purchases (Credit) 100 This last entry closes purchases and updates your inventory account.
no