Perpetual Inventory Entries
There are 2 main types of inventory control (Periodic and Perpetual). In a Periodic Inventory System, changes in inventory levels are only recorded when a physical count is performed. In a Perpetual Inventory System, the inventory levels are increased with every purchase and decreased with every sale.
This level includes:
- Increases in inventory with purchases
- Decreases in inventory with sales
- On Account purchases and sales
- Early payment discounts on purchases and sales (Cash Discounts)
The exercises are the same, but with different amounts.
The quiz is designed to test your knowledge. If you are having trouble with the exercises, practise the quizzes to boost your understanding.
The Supplemental Information is designed help further your understanding of the material. If you are having trouble with the exercises, take a look at this material.