ACCOUNTING I Dersi Merchandising Operations soru detayı:

PAYLAŞ:

SORU:

How does " balance of inventory account " work?


CEVAP:

In periodic inventory system, balance of inventory account is not decreased after each sale. The ending balances of COGS and Inventory account are determined by closing process. Therefore, the first journal entry representing the sale of merchandise is as follows:

Transportation, Sales Returns, Sales Allowances, and Collection of Receivable,