Asked by Kajal Barsiwal on May 03, 2024

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In a periodic inventory system, Purchases, Freight-In, and Purchases Returns and Allowances accounts are used.

Periodic Inventory System

An inventory system in which the inventory count and the cost of goods sold calculation are performed at set intervals, typically at the end of an accounting period.

  • Elucidate the properties and deployment of never-ending and interval-based inventory frameworks.
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ZK
Zybrea KnightMay 05, 2024
Final Answer :
True
Explanation :
In a periodic inventory system, transactions related to inventory purchases, freight costs, and returns or allowances are recorded in separate accounts (Purchases, Freight-In, and Purchases Returns and Allowances) to track the cost of inventory before it is periodically adjusted to reflect the cost of goods sold and ending inventory.