Familiarize yourself with periodic and perpetual inventory accounting.
Familiarize yourself with periodic and perpetual inventory accounting.
What is periodic inventory accounting?
Periodic inventory accounting is an accounting record that does not record inventories during the accounting period. Make the inventory balance at the beginning of the period. And will not record the cost of sales in every sale as well. Therefore, this method is recorded in such a way that counting and estimating on the recording date. This method is suitable for businesses that have a large number of products. The advantage is that it is easy to do and saves time. Can't immediately know the balance Businesses that use this method mall
What is Perpetual Inventory Accounting?
Perpetual inventory accounting is accounting that records inventory during the period. By recording inventory from purchase, sale, return, return, making it possible to know the balance of the product at all times This method is suitable for businesses that have a small number of products. The advantage is to know the balance immediately. The disadvantage is quite a lot of accounting records.
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