Question

The key difference in the closing process under the periodic and perpetual inventory systems is how merchandise inventory is handled.

True

False

Answer 1

Answer:

True

Explanation to the answer:

The Given statement is correct that key difference in the closing process under the periodic and perpetual inventory systems is how merchandise inventory is handled.

1)

In the periodic inventory system one should close the sales revenue as well as purchases return and allowance and purchase discounts .

2)

In the periodic inventory system ending inventory are recorded as debit debit while its closing .Beginning inventory balance are recorded credit during closing.