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QS 5-8AIdentify whether each description best applies to a periodic or a perpetual inventory system.a. Provides more timely information to managers.
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b. Requires an adjusting entry to record inventory shrinkage.
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c. Markedly increased in frequency and popularity in business within the past decade.
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d. Records cost of goods sold each time a sales transaction occurs.PerpetualExercise 5-9abcdeSales60,00042,50036,00078,00023,600Cost of goods soldMerchandise inventory [beginning]6,00017,0507,5007,0002,560Total cost of merchandise purchases36,0001,55030,75032,0005,600Merchandise inventory [ending][7,950][2,700][9,000][6,600][2,560]Cost of goods sold34,05015,90032,25032,4005,600Gross profit25,95026,6003,75045,60018,000Expenses9,00010,65012,1502,6006,000Net income [loss]16,950
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