Introduction
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Readysell runs a Perpetual Stock Inventory System not a Periodic Inventory system. The periodic and perpetual inventory systems are different methods used to track the quantity of goods on hand. |
What's the difference?
Under the perpetual system, there are continual updates to either the general ledger or inventory journal as inventory-related transactions occur. Conversely, under a periodic inventory system, there is no cost of goods sold account entry at all in an accounting period until such time as there is a physical count, which is then used to derive the cost of goods sold.
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