What is periodic inventory system with example?

What is periodic inventory system with example?

A periodic inventory system is a form of inventory valuation where the inventory account is updated at the end of an accounting period rather than after every sale and purchase. The method allows a business to track its beginning inventory and ending inventory within an accounting period.

How do you record drawings in the periodic inventory system?

What is the journal entry for ending inventory?

Write the amount of the company’s ending inventory in the debit column of the general journal. For instance, a company with $50,000 ending inventory must debit the inventory account for $50,000.

What is a periodic inventory system in accounting?

The periodic inventory system is a method of inventory valuation for financial reporting purposes in which a physical count of the inventory is performed at specific intervals.