Notes:
Periodic Inventory System Perpetual Inventory System
* Once a year (period) * Ongoing / Continuous
* Cost of sales calculated at year end / beginning of the year BUT * Cost of sales recorded after each transaction
NOT DURING THE YEAR
USE PURCHASES ACCOUNT NO PURCHASES ACCOUNT
Use Trading Account - USE OPENING STOCK & CLOSING STOCK Use Trading Account - NO OPENING STOCK/CLOSING STOCK
For each expense, create a T-account first then take to Trading Account For each expense, record under the Trading Account
Periodic Inventory System Perpetual Inventory System
* Once a year (period) * Ongoing / Continuous
* Cost of sales calculated at year end / beginning of the year BUT * Cost of sales recorded after each transaction
NOT DURING THE YEAR
USE PURCHASES ACCOUNT NO PURCHASES ACCOUNT
Use Trading Account - USE OPENING STOCK & CLOSING STOCK Use Trading Account - NO OPENING STOCK/CLOSING STOCK
For each expense, create a T-account first then take to Trading Account For each expense, record under the Trading Account
